18 hours ago
Oman's OQGN awards EPC contract for $273mln Fahud - Suhar Loop Line project
OQ Gas Networks (OQGN), Oman's sole gas transmission operator and owner, announced on Wednesday that it has awarded Engineering, Procurement, and Construction (EPC) contract for the new 42 inch, 193-kilometre (km) loop line from Fahud to Suhar to Egypt-headquartered Petrojet.
The agreement for the Fahud - Suhar Loop Line project was signed on 17 June 2025, the MSX-listed company said in a stock exchange statement.
The statement said OQGN also awarded the supply of 193-km of line pipes to Jindal SAW.
The project, which is estimated to cost 105 million Omani riyals ($273 million), is scheduled to be completed in 24 months, the statement noted.
According to the statement, the project cost will be included in the Company's Regulated Asset Base (RAB), and, like the rest of the RAB, the return on this investment will be determined based on the Weighted Average Cost of Capital (WACC). The currently approved WACC in Price Control 3 is 7.79 percent and will remain in effect until 2027.
In November 2024, Zawya Projects had reported that OQGN secured approval from relevant authorities for the execution of a second loop line from Fahud to Sohar.
(Reporting by Deva Palanisamy; Editing by Anoop Menon)
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