New Delhi, Sep 4 (IANS) Oman is banking on new discoveries as well as supplies from Qatar to boost its gas supply position soon, Omani Commerce and Industry Minister Maqbool Ali Sultan indicated here Monday.

Oman is currently not in a position to meet the demands of gas-based industries but it might be in a better position in a few years, said Maqbool.

"For small industries gas will be available, but not for big gas-based industries. We hope to find more gas to meet the needs of more industries," Maqbool told IANS.

Oman is currently exporting 9 million tonnes of liquefied natural gas (LNG) to countries like South Korea and Japan among others.

Besides banking on new discoveries, Oman is also looking at gas supplies from Qatar under a gas sales agreement signed last year by Oman Oil Company (OOC) with Dolphin Energy Ltd, which has promised to deliver an average 200 million standard cubic feet of gas per day (mmcmd) to Oman from early 2008.

"Only when more gas becomes available would Oman be in a position to go in for expansion of existing projects and undertaking more projects in fertiliser and other sectors," said Mohammed Hassan Al-Theeb, deputy chief executive officer of Salalah Free Zone.

Al-Theeb said in the first phase the government proposed to invest $15 million in development of infrastructure including warehouses and port connectivity for the free zone covering 19 million square metres.

The second phase of the free zone would be developed depending on demand.

"The aim of the free zone is to promote both heavy as well as small and medium industries and logistics operations. While we would like to provide water and gas, the latter is not available as yet. But within next three to four years it will be available," the official said.

Indian Ambassador to Oman Ashok Kumar Attre said Oman is keen to build another fertiliser plant at the Sohar Industrial Port though on a smaller scale than the Oman India Fertiliser Company, a joint venture that will be supplying India 1.68 million tonnes of urea and 255,000 tonnes of ammonia under a long-term buyback arrangement.

The project, currently on hold, is expected to take off once gas becomes available in a couple of years.

"Oman is looking at India for investments in areas like plastics, steel, power generation and other spin- off industries using feedstock from its oil refinery, aluminium smelter, and polypropylene plants in the Sohar Industrial Port," said Attre.

The projects in the Sohar Industrial Port, which has already witnessed investments worth $12 billion in little over a year, "is tailored to provide feedstock for steel plants, petrochemical and fertiliser projects," said Attre.

Through these mega projects Oman is striving to increase its non-oil revenue, which registered a 9.2 percent increase in 2005.