MUSCAT - OQ Gas Networks (OQGN) – the sole owner and operator of Oman’s natural gas transmission system – is making headway in studying the feasibility of developing a Carbon Capture, Utilisation and Storage (CCUS) ecosystem covering industrial hubs in the northeast of Oman.

The initiative is one of three strategic CCUS hubs envisioned as part of the country’s Net-Zero journey, a key pillar of which is a strategy for capturing and transporting CO₂ from emission sources to storage or utilisation sites via a dedicated pipeline network of around 800 km.

“When it comes to CO₂, we are making good progress,” an official said. “We are in advanced stages of the feasibility study of a CCUS northern ecosystem in Oman, and hopefully by the end of this year we will have clarity on whether an FID can be made, what the next milestones are, and how they could contribute to OQGN’s profitability,” he added in a conference call with the investor community on Wednesday, March 11, 2026.

Taking part in the discussion were Mansoor bin Ali al Abdali, CEO; Sultan al Balushi, Acting Chief Financial Officer (CFO); and Saif al Hosni, Chief Business Development & Commercial Officer, among other OQGN officials.

Under a nationwide carbon-management framework first unveiled by OQGN last December, three distinct CCUS ecosystems are envisaged. The Northern CCUS Ecosystem is designed to decarbonise the expanding Sohar Industrial Area—Oman’s largest emissions cluster—and nearby regions such as Ibri. It requires securing steady CO₂ supplies and transporting them via an estimated 300-km pipeline to storage or utilisation sites.

The Central CCUS Ecosystem is intended to serve existing and emerging emitters in Al Duqm, with potential storage sites in Oman’s largest oil concession, Block 6. The estimated pipeline length is about 200 km. The Southern CCUS Ecosystem is planned for the Salalah Industrial Area, directing CO₂ to southern Block 6 storage sites within PDO’s concession through an estimated 300-km pipeline network. For the Sur industrial hub, OQGN noted that analyses showed it is more cost-effective to route captured CO₂ to local sinks.

According to the officials, a call to gauge market interest in participating in the CCUS infrastructure has elicited responses from some players. However, OQGN is currently focused on advancing the Northern Ecosystem in light of the clear demand for CCUS in this area. As for the Central and Southern ecosystems, those opportunities are still evolving, they noted.

At the same time, the government and the Oman Net-Zero Center are encouraging CO₂ emitters to consider ways to reduce their carbon footprint, while also weighing regulations in the form of incentives and taxes, the officials added.

A key priority for the company, they said, has been securing government mandates for emerging energy infrastructure. It has since been designated the national champion for both green hydrogen and CO₂ transportation. The company noted that development of the green hydrogen sector has slowed due to prevailing market conditions, but emphasised that its mandate remains firmly in place and that it will be responsible for developing the sector as opportunities arise.

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