OQ Gas Networks (OQGN), the majority state-owned operator of Oman’s gas transportation network, is currently executing ten strategic projects to expand its capacity and meet growing demand across the country.
Among the key initiatives is the 48-inch Central-Rich-Lean (CRL) gas project, which extends the 48-inch loop line by 65 km and establishes a Gas Network Hub in Central Oman. Another major project is the 42-inch Fahud-Suhar Loop Line, part of OQGN’s Long-Term Development Plan, which is expected to add 9 million standard cubic meters per day (MMSCMD) to the northern gas network by 2027, supporting growth in Suhar and Ibri.
These efforts build on four projects completed in 2024, including a 17 km pipeline in Duqm and the Saib Project, which added 208 km of 32-inch pipeline in the Dhofar Governorate, increasing the south grid’s capacity by 60%.
As a result, OQGN’s network length grew by 4.7% to 4,235 km in 2024, up from 4,045 km in 2023. Network capacity also rose by 2.6% to 71.1 billion cubic meters (BCM), compared to 69.3 BCM the previous year. Natural gas transportation increased by 6.1% to 42.98 BCM in 2024, with a record single-day delivery of 131.4 million cubic meters (MCM), marking a 4.8% increase from the previous record.
OQGN’s long-term growth prospects are bolstered by its strong position in natural gas transportation and its emerging role in green hydrogen and decarbonization initiatives. The company noted in its 2024 Annual Report that Oman’s gas demand is expected to remain stable over the next two decades, driven by LNG exports and natural gas-based electricity generation.
“With a natural monopoly in midstream gas transportation, OQGN is well-positioned to benefit from stable demand. Oman Vision 2040 emphasizes economic diversification, particularly in green hydrogen and CO₂ transportation, where OQGN’s expertise positions it as the preferred operator to support Oman’s hydrogen ambitions,” the report stated.
To achieve its goals, OQGN plans to expand its core gas midstream services while advancing into hydrogen and CO₂ transportation. In 2024, the company signed a Memorandum of Understanding (MoU) with Hydrom, appointing it as the National Infrastructure Provider for Hydrogen (H₂) pipelines. Additionally, OQGN is collaborating with Oxy Oman on CO₂ transportation to develop a Carbon Capture, Utilization, and Storage (CCUS) value chain.
The company is also working with Shell, OQ, and PDO on the Blue Horizons low-carbon and ammonia pre-FEED project, exploring viable commercial models for decarbonization.
(Source: Oman Daily Observer)
