MUSCAT - A key gas sales agreement signed earlier this week will pave the way for the establishment of a new NGL Extraction Project at Saih Al Nihayda in central Oman, which will eventually strengthen plans for a long-anticipated petrochemicals complex at the Special Economic Zone at Duqm (SEZAD).

The agreement was one of five pacts and one MoU inked by OQ, the global energy investment group, with the Integrated Gas Company (IGC), the sole aggregator and supplier of natural gas in the Sultanate of Oman. The agreements aim to strengthen the resilience and integration of Oman’s gas value chain, from upstream exploration to downstream industries, ensuring reliable supply for industrial growth across Oman.

Under the agreement, the two sides signed a supply term sheet that secures the supply of 48 million cubic metres of natural gas per day for 20 years to the new Saih Al Nihayda NGL Extraction Project. The project’s first phase will include facilities for gas separation, storage and export in the Special Economic Zone at Duqm (SEZAD).

The Term Sheet, as a second phase, provides for the allocation of gas resources to the planned Duqm Petrochemicals Complex, with a potential ethane production capacity of one million tonnes per year, creating an integrated industrial ecosystem that enhances in-country value.

This agreement was signed by Ashraf bin Hamed al Mamari, Group Chief Executive Officer of OQ and Abdul Rahman bin Humaid al Yahyaei, Chief Executive Officer of IGC.

Another agreement enables OQEP to sell its share of natural gas from Block 65 to IGC, enhancing flexibility and sustainability within Oman’s domestic gas supply network and ensuring the steady flow of gas to industrial clients.

In the LNG segment, another agreement enables Marsa LNG to receive and transport up to 150 million standard cubic feet per day of natural gas from its entitled share in the Mabrouk field (Block 10), where Marsa LNG holds a 33.19% interest.

In the downstream sector, an agreement was signed between Oman India Fertiliser Company (OMIFCO) and IGC to renew an existing natural gas supply contract for ten years and to define the commercial and operational framework for the sale and purchase of 4.3 million cubic metres of gas per day (equivalent to 161,000 MMBtu/day). This agreement will ensure the continued production of ammonia and urea through secured feedstock.

To ensure infrastructure sustainability in Duqm, IGC signed a fifth agreement with Marafiq to supply natural gas to the Duqm power and water desalination plant, guaranteeing consistent energy and water services critical to SEZAD’s continued growth.

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