MUSCAT - Pressing ahead with its carbon capture and CCUS ambitions, OQ Gas Networks (OQGN) – the majority state-owned operator of Oman’s gas transportation infrastructure – has identified the Ibri Power Project in Al Dhahirah Governorate as a promising candidate for carbon capture in partnership with Occidental (Oxy) Oman.

Carbon capture, utilisation, and storage (CCUS), along with green hydrogen transportation, form key pillars of the publicly traded company’s strategy to position itself as a leading player in advancing Oman’s Net Zero goals.

“The company’s strategic stance towards energy transition continues to be a focus, specifically in hydrogen and CCUS,” OQGN stated in its Q2 2025 financial performance report. “As part of this work, OQGN has signed a cooperation agreement with (Belgian energy infrastructure player) Fluxys to jointly develop hydrogen transportation infrastructure in Oman. On the carbon capture front, the Ibri Power Plant has been identified as a key priority, and OQGN has coordinated with Oxy on the way forward to jointly assess capture opportunities.”

The 1,509 MW combined-cycle gas turbine (CCGT) power plant in Ibri is one of Oman’s largest gas-fired projects and began operations in Q2 2019. It was developed by Ad-Dhahirah Generating Company, backed by a consortium that includes ACWA Power, Mitsui, and DIDIC as its major shareholders.

Oxy Oman is among several local and international entities collaborating with OQGN to advance the Sultanate of Oman’s energy transition and decarbonisation goals. In November 2023, the upstream energy company signed an MoU with OQGN to jointly study and develop CCUS projects in Oman, particularly for enhanced oil recovery (EOR) and broader carbon management strategies.

Belgian energy infrastructure leader Fluxys is both a strategic partner and an investor, holding a 4.9% equity stake in OQGN. The two companies signed an MoU in October 2023 to collaborate on developing hydrogen and CO₂ infrastructure in Oman. In May 2025, they advanced this partnership by signing a term sheet agreement under which Fluxys will serve as a minority shareholder and co-operator in developing Oman’s hydrogen transportation network.

In addition, OQGN has joined a Memorandum of Cooperation with Oman’s Ministry of Energy and Minerals and other major energy players to form a “House of Expertise” tasked with developing the regulatory and strategic framework for CCUS technologies and blue hydrogen in support of Oman’s Net Zero 2050 targets.

Likewise, in collaboration with Hydrom – the architect of Oman’s green hydrogen sector – OQGN is conducting technical feasibility studies on open-access pipeline networks for both green hydrogen and CO₂ transport, leveraging its existing natural gas infrastructure to support decarbonisation.

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