Oman to boost gas pipeline capacity
MUSCAT, MAY 5
OQ Gas Networks (OQGN), the sole owner and operator of Oman's national gas transportation system, is targeting a significant expansion of its pipeline network to support both volume growth, as well as enable the strategic management of the countrywide gas supply grid.
Future growth plans outlined by the publicly traded company – part of OQ Group – envision a 5.6 per cent rise in the network's current length of 4,235 km, and a 13.1 per cent increase in the network's current capacity of 70.48 billion cubic metres (BCM). This growth is proposed to be achieved by 2027, the company noted in its 2024 Annual Report.
'OQGN's business plans align with Oman Vision 2040, focusing on energy diversification, digital transformation, and sustainable growth. During the next three years, the Company aims to expand its total pipeline length to nearly 4,500 km and increase network capacity to nearly 80 BCM,' the company stated.
Gas demand is anticipated to grow at a CAGR of 4.7 per cent between 2024 and 2030, according to OQGN. In 2024, the company delivery 42.98 BCM of gas, entailing a 3.5 per cent increase over the previous year's total. Consumers included LNG facilities, power and desalination plants, and industrial sectors throughout the country.
Of the many suppliers channeling natural gas to OQGN, through state-owned Integrated Gas Company (IGC), the Unified Shipper, Petroleum Development Oman (PDO) contributed a 56.8 per cent share. The largest consumer was the LNG sector, accounting for 41.3 per cent of total gas consumption, followed by the industrial and commercial sectors at 27.6 per cent.
Significantly, OQGN's new pipeline and capacity growth will be driven by around 10 ongoing projects, including the following strategic initiatives:
Fahud-Suhar Loop Line: It entails the construction of an additional 193 km, 42-inch loop line from the Fahud Compressor Station to Block Valve Station-6 in the Al Dhahirah Governorate, running parallel to two existing 32-inch pipelines from Fahud Compressor Station to Suhar. The project also includes the construction of a 2 km, 16-inch spur line to supply gas to the proposed Ibri Industrial Estate GSS and the extension of six block valve stations. When completed in 2027, the project will boost capacity at Suhar by more than 26 per cent.
Central Rich and Lean Gas Segregation Project (CRL): Centring on the development of a gas blending station in the Central Region for rich and lean gas segregation, this project also includes a 48-inch, 65km loop line extension from Block Valve Station 9 to the Sur GSS. Total investment in the project, which will enhance gas value by segregating rich and lean gas, is around RO 70.8 million. The project has been partly commissioned.
Additionally, OQGN is rolling out a Long-Term Network Development Plan (LTNDP) designed to analyze and balance gas supply and demand. Updated annually, this tool provides a seven-year forecast to ensure the network can meet future requirements related to the rise in consumption due to population growth or large new industrial projects.
'This planning process helps identify bottlenecks, assess infrastructure adequacy, and guide investment decisions made by the Government of Oman, the Shipper (IGC), and the Regulator (APSR) to plan for network capacity, supply, and gas distribution to different regions. The current LTNDP covers the period from 2024 to 2031,' the company added.
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