Plant denied natural gas to operate despite repeated requests and pleas, says CEO
Oman’s Majan Consolidated Company has said it is struggling to secure the required amount of gas for production at its new steel plant in the Sultanate.
Hadid Majan Steel Factory, which was launched in 2003, has completed setting up a new plant butthe shortage of gas supplyis causing operational difficulties, said Anvwar al Balushi, Group CEO of Majan Consolidated Company.
The company started with a production capacity of 5,000 tonnes per month consuming 10,000 cubic meters of gas per day, and “after much hardships we established the new plant but we are disappointed that we are denied natural gas to operate our plant despite our repeated pleas,”al Balushi said.
The new plant, whichwas built at an approximate cost of $13m, is currently operating with 70% of gas allocated for the old plant, which in turn has been affected and is producing only 5,000 tonnes of iron every month now, instead of the planned production of 12,000 tonnes per month, he said.