Dr Mohammed bin Hamad Al Romhi, minister of oil and gas, signed the agreement on August 18 on behalf of the government while Dr Omar bin Abdul Munim Al Zawawi, along with authorised signatories Dr Axel Wippermann and Joseph M. Cassidy, signed on behalf of Oman Methanol Company. The agreement was signed in the presence of government officials and representatives of Oman Methanol Company and its shareholders. This is the first gas supply agreement executed by the government for supply of natural gas to a private sector gas-based industrial project in Sohar through the 32-inch gas pipeline built by Oman Gas Company from Fahud to Sohar. Oman Methanol Company will receive natural gas for a period of 25 years as per the agreement. The promoters of Oman Methanol Company are: MAN Ferrostaal AG of Germany, Methanol Holdings (Trinidad) Limited from Trinidad & Tobago; and Oman Methanol Holding Company. Man Ferrostaal AG and Oman Proman Contracting & Trading LLC are building the plant. Sohar methanol project is the first mega private sector industrial project being set up in Oman. The company has finalised all project agreements and expects to achieve financial closure by September 2004 and the first methanol production by December 2006. The project with a total investment of about $500 million will have a production capacity of 3,000 tonnes per day. The plans are already being developed for a second methanol plant at the same site to double methanol production by end 2007. A ten-year agreement for annual sale of about one million tonnes of methanol from the first plant has also been executed on the same day between Oman Methanol Company and Helm AG of Germany. PIN//Times Of Oman