Latest news with #OQGasNetworks
Observer
05-08-2025
- Business
- Observer
Oman advances CO₂, green hydrogen pipeline studies
MUSCAT: OQ Gas Networks (OQGN), the majority state-owned natural gas pipeline operator, has announced significant progress in its mandate to roll out dedicated pipelines for green hydrogen and carbon dioxide (CO₂), in support of Oman's energy transition strategy. Publicly traded OQGN — part of Oman's integrated energy group OQ — stated in its newly issued 2024 Sustainability Report that its initiatives are aligned with national strategies to develop new low-carbon industries focused on green hydrogen production and Carbon Capture, Utilisation and Storage (CCUS) technologies, both of which are key to Oman's Net-Zero 2050 targets. This commitment aligns with OQGN's designation as a National Champion for Green Hydrogen and CO₂ Transportation, conferred by Hydrom, the state-run architect of Oman's green hydrogen industry. 'We are (...) actively exploring opportunities in hydrogen and carbon capture infrastructure, aligning with global energy trends shaping the future of our industry', said Mansoor al Abdali, CEO of OQGN. 'Looking ahead, we are poised to play a central role in Oman's energy future. As we invest in network expansion, digitalisation and decarbonisation initiatives, we remain aligned with Oman Vision 2040 and its sustainability goals', he added in the CEO's Message. In 2024, OQGN began working closely with key industry stakeholders to establish itself as 'the partner of choice for hydrogen and CO₂ pipeline transportation'. As part of this ambition, the company initiated collaborations with CCUS developers to create commercial-scale projects that address CO₂ transportation needs. 'We also launched detailed feasibility studies focused on establishing the technical, commercial and regulatory aspects of the pipeline networks', the company stated. Furthermore, in collaboration with Hydrom, OQGN has been leveraging its extensive pipeline expertise in the development of Oman's hydrogen and CO₂ transportation infrastructure. Central to this initiative is a vision for an open-access pipeline connecting green hydrogen production blocks (powered by wind and solar) with derivative plants located along the coast for efficient processing and export. 'This hydrogen pipeline network is being developed in coordination with Hydrom's planned projects in Al Duqm, Salalah and Al Jazir. As domestic demand for low-carbon hydrogen grows, the network will expand to serve industrial clusters in northern and eastern Oman', OQGN noted. 'In an additional step, an open-access CO₂ pipeline network will also link emission sources to sinks. As natural gas demand declines, stranded natural gas pipelines may be repurposed and recommissioned as part of the green hydrogen transportation network', the company added. According to OQGN, a comprehensive long-term Decarbonisation Strategy is currently in place to accelerate the reduction of greenhouse gas (GHG) emissions across the company. 'The strategy drives us towards the goal of Net-Zero by 2050, with ambitious interim targets: a 42% reduction in GHG emissions by 2030 and 82% by 2040. These milestones have been set with consideration for emerging technologies, evolving regulations, shifting stakeholder expectations and our investment strategy — while also balancing urgency with feasibility', it stated.
Observer
02-08-2025
- Business
- Observer
Project to strengthen gas supply in Suhar and Ibri
MUSCAT: Integrated Gas Company (IGC) has approved the implementation of a major gas pipeline project aimed at meeting the rising industrial demand in Suhar Port and Ibri. The initiative includes the construction of a 42-inch diameter pipeline stretching 193 kilometres from Fahud in the Wilayat of Ibri, Al Dhahirah Governorate, to Suhar in North Al Batinah Governorate. It will also feature a lateral connection serving the industrial zone in Ibri. The new pipeline is expected to improve the reliability and availability of natural gas supplies to key economic regions, facilitating sustainable industrial growth both now and in the future. IGC, the exclusive authority responsible for issuing gas transmission orders in the Sultanate of Oman, has fully approved the project and entrusted its implementation to OQ Gas Networks—the owner and operator of gas transmission infrastructure in the country. Following a competitive tendering process, OQ Gas Networks awarded the engineering, procurement, and construction (EPC) contract to Petrojet & Partners, valued at RO 105 million. The pipeline supply contract was awarded to Jindal Saw Limited. The project is scheduled for completion within 24 months. Once operational, the pipeline will expand the national gas network by 4.5 per cent and account for approximately 9.5 per cent of the regulated asset base, underscoring its significance to Oman's energy infrastructure. Abdulrahman bin Humaid al Yahyaei, CEO of Integrated Gas Company, described the initiative as a pivotal milestone in the company's strategy to develop a flexible, efficient, and future-ready national gas network. He highlighted the project's role in meeting growing industrial energy needs while reinforcing Oman's position as a regional energy hub. Al Yahyaei added that the project underscores IGC's commitment to establishing a dependable energy system that aligns with Oman's industrial and economic objectives. It will stimulate investment, promote in-country value, create job opportunities, and support the transition to clean energy. He noted that the pipeline will supply Suhar Industrial Port with around 13 million cubic metres of gas per day, addressing the requirements of future industrial projects. A portion of the gas will also be allocated to Ibri Industrial City to support its upcoming development plans. — ONA Abdulrahman bin Humaid al Yahyaei, CEO of Integrated Gas Company.
Muscat Daily
02-08-2025
- Business
- Muscat Daily
OQGN gets IGC approval for 193km Fahud-Suhar gas pipeline project
Muscat – Integrated Gas Company (IGC), the state-owned entity overseeing Oman's entire gas supply chain, has announced its approval for the implementation of a major new gas pipeline project to meet the growing industrial demand in Sohar Port and Ibri. The project, which will be executed by OQ Gas Networks (OQGN), involves the construction of a 42-inch diameter, 193km gas pipeline extending from Fahud in Ibri to Suhar, with an additional lateral connection serving the Ibri Industrial Area. IGC has granted full approval for this project as the exclusive authority responsible for issuing gas transmission directives in Oman and has assigned the implementation to OQ Gas Networks, the owner and operator of the gas transmission infrastructure under its jurisdiction. This new pipeline will enhance the reliability and availability of natural gas supplies to key economic zones, supporting sustainable industrial growth both now and in the future. Following a competitive tender process, OQ Gas Networks awarded a contract worth RO105mn in June for the engineering, procurement, and construction (EPC) works to Petrojet & Partners. The pipeline supply contract was awarded to Jindal Saw Limited. The project is expected to be completed within 24 months. The pipeline will increase the length of the national gas network by 4.5% and accounts for approximately 9.5% of the base value of regulated assets, underlining its significance to Oman's energy infrastructure. In a statement to the Oman News Agency, Abdulrahman bin Humaid al Yahyaei, CEO of Integrated Gas Company, said, 'This strategic project represents a significant milestone in the company's long-term vision to develop an efficient, flexible, and future-ready national gas network.' He explained that the project enhances Oman's capacity to meet its growing industrial energy requirements and strengthens its position as a regional energy hub. He added that the project embodies the role of the Integrated Gas Company in building a reliable energy system that supports the industrial and economic aspirations of the sultanate, promoting investment, local content, employment opportunities, and the transition to clean energy. Yahyaei noted that the gas pipeline will supply the Suhar Industrial Port with approximately 13mn cubic metres of gas per day to meet the requirements of upcoming industrial projects. Part of this supply will also serve Ibri Industrial City to support planned developments there.
Observer
19-07-2025
- Business
- Observer
Sur Hydrogen Cluster study in Oman advances
MUSCAT, JULY 19 The Sur Hydrogen Cluster and Energy Transition Study – an initiative designed to support the decarbonisation of major industries in the Sur industrial hub – is set to enter the detailed feasibility stage, according to Oman LNG, the lead player spearheading the project. At the heart of the initiative is a comprehensive plan to integrate large-scale renewables and green hydrogen production, enabling a range of industrial, petrochemical, and energy projects operating in Sur to achieve their Net Zero goals. During its preliminary stage, the Sustainable Energy Research Centre (SERC) at Sultan Qaboos University (SQU), along with the Oman Hydrogen Alliance (Hy-Fly), assessed the technical, economic, and partnership frameworks required to position Sur as a hydrogen export and low-carbon fuel hub aligned with Oman's national energy transition ambitions. Also participating in the initiative are Phoenix Power Oman (operator of Sur IPP), Oman India Fertilizer Company (OMIFCO), OQ Gas Networks, OQ Alternative Energy, and Madayn – the authority administering Sur Industrial City. Sharing an update on the initiative, Oman LNG stated: 'We recently held a framing session with our key partners – Oman India Fertiliser Company SAOC (OMIFCO), OQ Gas Networks (OQGN), and OQAE – to shape the Sur Hydrogen and Energy Transition Cluster Study. We are now finalising the scope of work, which will be followed by the tendering process for a detailed feasibility study, expected to commence in the second quarter of 2025, with the Oman Energy Association (OPAL) managing the tender. This initiative is part of our broader commitment to advancing Oman's position as a leader in green hydrogen and energy transition.' The project envisions the use of renewable energy to produce green hydrogen, which will serve as a fuel resource for project stakeholders. This shift will displace significant volumes of natural gas currently used as fuel and feedstock by Sur-based industries. The freed-up gas could then be redirected by Oman LNG for liquefaction and export. An output of around 487 tonnes per day of low-carbon hydrogen is anticipated if and when the Sur Hydrogen Cluster is fully implemented. In addition to the cluster initiative, Oman LNG is also weighing a host of schemes to support its energy transition, energy efficiency, and decarbonisation goals. 'Key initiatives for the year include developing a FEED package for the power import project, finalising green power sourcing concepts with a robust commercial model, and conducting comprehensive assessments to enhance energy efficiency,' the majority state-owned company noted in its 2024 Sustainability Report. Furthermore, the company has conducted a techno-economic analysis of opportunities linked to proposals such as solar photovoltaic (PV) power generation capacity, Battery Energy Storage System (BESS) capacity, and flare gas recovery. Oman LNG is working closely with OQ Alternative Energy to explore optimal renewable energy sourcing. Additionally, a new Energy Efficiency Improvement Programme was launched this year to enhance or maintain the high thermal efficiency of Oman LNG's triple-train complex at Qalhat. 'This initiative will focus on identifying practical ways to increase efficiency and sustain our top-tier results. We are currently finalising the delivery plan for this programme, which underscores our ongoing commitment to operational excellence and responsible energy use,' the company added.
Muscat Daily
18-06-2025
- Business
- Muscat Daily
OQGN awards EPC contract for RO105mn loop line project
Muscat – OQ Gas Networks Company (OQGN), the sole operator of Oman's natural gas transportation network, has awarded contracts for the engineering, procurement, and construction (EPC) works, as well as the supply of line pipes for its second 193km-long Fahud–Suhar Loop Line Project. In November last year, OQGN received regulatory approval to construct the new 193km loop line connecting Fahud to Suhar. The pipeline, which will have a diameter of 42 inches, is designed to strengthen Oman's natural gas infrastructure and support regional energy demands. 'OQ Gas Networks is pleased to announce the awarding of the tender for engineering, procurement, and contracting works for the 42-inch second Loop Line Fahud–Suhar Project to The Petroleum Projects Company Petrojet and Partners LLC,' OQGN said in a disclosure to the Muscat Stock Exchange on Wednesday. The agreement was signed on June 17. 2025, the company confirmed. As part of the project execution strategy, OQGN has also awarded the supply of 193km of line pipe to Jindal Saw Limited. 'It is worth noting that the total project cost is approximately RO105mn, with a planned execution period of 24 months,' the company added. The project cost will be incorporated into the company's Regulated Asset Base (RAB), and, like the rest of the RAB, the return on this investment will be calculated based on the weighted average cost of capital (WACC). The currently approved WACC under Price Control 3 is 7.79%, and it will remain in effect until 2027, according to OQGN. The company stated that the Fahud–Suhar Loop Line Project is in line with its growth strategy and vision of leading the energy infrastructure sector. Described as one of the largest initiatives sanctioned by OQGN since the implementation of the RAB framework, the project is expected to significantly boost gas supply capacity in the Suhar and Ibri regions. It supports Oman's long-term energy strategy and aligns with OQGN's infrastructure expansion objectives. According to OQGN's earlier disclosure, the Fahud–Suhar Loop Line Project is scheduled for completion in 2027. Once operational, the new pipeline will increase the capacity of OQGN's northern gas network by 9mn standard cubic metres per day, further solidifying the company's role in meeting the growing demand from key industrial and power sectors. OQGN, which operates the sultanate's only natural gas transportation network, currently manages over 4,000km of pipeline infrastructure across Oman. The network supplies gas to a wide array of critical industries, including power generation, water desalination, cement and aluminium production, fertiliser manufacturing, and petrochemical plants.
