Construction Week reported that the industrial divison of Qatar’s Buzwair has signed a contract to build a cryogenic gas separating plant at Sur, Oman with the UAE based Sun Metals a commercial scale scrap metal recycling specialist.

According to the report, the plant will produce 60 tonnes of gaseous oxygen a day and 70 tonnes of liquid oxygen, nitrogen and argon a day, largely for the steel production operations of an integrated steel mill planned nearby.

Mr PT Sivarajan, director of operations at Sun Metals which is investing in 1.2 million tonnes per annum of steel complex at Sur, said, “We have signed a contract with Buzwair for the establishment of an industrial gases plant on a build own operate basis.”

Mr Sivarjan said, “Buzwair’s facility will be constructed on the site of the steel mill complex to provide us with a continuous supply of industrial gases. Work on the project is expected to commence just after the holy month of Ramadan, with phase one of the project scheduled to come into operation before the end of 2013.”

He said that at the conclusion of the 15-year supply contract, Sun Metals has the option to buy back the industrial gases plant from Buzwair.

Liquid oxygen and nitrogen are used as a back up supply in the steelmaking process during periods when everyday gas supplies are insufficient or not available.

The gases oxygen and carbon are injected by lance or jets to the Electric Arc.

Mr Sivarjan said “in the continuous casting process, the steel is finally cut to a specified product length by use of an oxygen and gas cutting unit”.

The plant will initially produce around 600,000 annual tonnes of billets and blooms with the potential to spawn a myriad of downstream investments and ancillary ventures all around Sur.