‘Trailblazer Projects' status for 3 CCUS ventures in Oman
MUSCAT, MARCH 23
OQ Gas Networks (OQGN), the majority state-owned operator of Oman's gas transportation network, says it has begun conceptualising the rollout of a pipeline network for the transportation of carbon dioxide (CO2) in support of the country's broader decarbonisation and Net-Zero strategies.
Also as part of this initiative, OQGN — part of OQ Group — is collaborating with a number of energy companies and public sector stakeholders in the development of 'trailblazer projects' based on carbon capture, utilisation and storage (CCUS) technologies.
The revelations came during an online discussion on OQGN's 2024 financial and operational performance during 2024, hosted by the company as part of its obligations as a publicly listed entity. Representing OQGN were Ali Mohammedi, Head of Network & Business Development, Khalifa al Maamari, Chief Operating Officer, Khalid al Qassabi, Chief Financial Officer and Faisal al Maamari, Chief People, Technology and Culture Officer.
The officials noted that CO2 transportation represents an 'attractive' business opportunity for OQGN, in addition to its role in supporting green hydrogen transportation when the country's energy transition advances. Decarbonisation by carbon capture, they pointed out, is one of the key pillars to achieving Net-Zero by 2050, with OQGN set to play a big role in the transportation of CO2 from generators to end-users.
According to the officials, the Ministry of Energy and Minerals is currently developing CCUS and Blue Hydrogen regulations and key policies with sector stakeholders. To spur investment in this key segment of the energy transition journey, the Ministry has set up a CCUS Core Team with representatives from, amongst others, Oxy Oman (with a focus on carbon capture), OQGN (transportation), Petroleum Development Oman (CO2 storage), Shell (Blue Hydrogen products and Synthetic Fuels) and the Ministry (CO2 utilisation for Oil & Gas and International investment in CCUS).
Already, three commercial-scale CCUS initiatives have been designated as 'Trailblazer Projects' by the Ministry as part of its support for first-movers. 'Some of the opportunities we're looking at as part of this core group are projects identified as trailblazers. These are projects that are in a bit more advanced stage, where transportation will be required, along with other parts of the value chain,' one official said.
'So we've been working with our partners over the past one year to mature these opportunities, one of which is the Northern Ecosystem opportunity, which is looking at potential decarbonisation of the Suhar industrial area, finding sinks and usage of the CO2. This could entail a CO2 pipeline extending more than 200 kilometres potentially.'
Likewise, OQGN is working with Shell, OQ and PDO on the pre-FEED for the Blue Horizons project — a first large-scale initiative of its kind to produce low carbon blue hydrogen and ammonia for local and international markets. 'OQGN is exploring attractive commercial models with regard to the CO2 transport pipeline, ensuring bankability and shareholder value,' officials shared in a presentation.
Additionally, building on an MoU signed in 2023, OQGN is collaborating with Oxy to develop an attractive CCUS value chain to meet Oxy's requirement of CO2 for EOR projects. This encompasses commercial aspects with regard to the CO2 transport pipeline.
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