MUSCAT: Oman’s sole gas transmission operator and owner, OQ Gas Networks (OQGN), is gearing up to significantly expand its natural gas network in response to the rising demand across the Sultanate of Oman. With a rich history of growth and innovation, OQGN plays a crucial role in Oman’s energy sector, providing essential infrastructure to various industries.

Eng Mansoor al Abdali, CEO of OQGN, in a presentation during the inaugural ‘CEO Talks @U Capital’ held yesterday, stated, “Forecasting an average growth rate of 3% per year in natural gas network capacity during the Price Control-3 period, OQGN’s expansion is set to strengthen Oman’s energy landscape.” The company’s dedication to reliability, integrity, availability, and safety is evident, as shown by the impressive milestone of delivering 40.5 billion standard cubic metres (SCM) of gas in 2023 — the highest in its history.

OQGN’s robust expansion plans include developing new pipeline segments and compressor stations to enhance gas transportation efficiency. Currently, the company manages 4,045 kms of gas pipelines, along with three compressor stations and 29 gas supply stations, ensuring energy delivery to 130 major consumers, including power plants, desalination facilities, and various industrial complexes.

By 2024, OQGN plans to increase the pipeline length to 4,222 kms, further extending it to 4,287 kms in 2025, 4,344 kms in 2026, and 4,472 kms by 2027. Network capacity is expected to rise from 69.3 billion SCM in 2023 to 71.1 billion SCM in 2024, 77.1 billion SCM in 2025 and 2026, and 79.7 billion SCM by 2027. Correspondingly, the volume of gas transported is projected to increase from 40.5 billion SCM in 2023 to 41.7 billion SCM in 2024, 43 billion SCM in 2025, 44.3 billion SCM in 2026, and 45.6 billion SCM by 2027.

In a strategic move to support Oman’s energy transition, OQGN is leading the development of hydrogen pipeline infrastructure. “As the National Infrastructure Provider for hydrogen pipelines, OQGN is partnering with various entities to streamline hydrogen transportation, paving the way for sustainable energy solutions,” Al Abdali added.

The Sultanate of Oman has set out ambitious Green Hydrogen Production Targets that will be enabled by OQGN. OQGN is actively involved in Hydrom’s feasibility study, ensuring alignment on technical, commercial, financial, and legal considerations, with the study expected to be finalised by Q4 2024. OQGN is also in talks with Fluxys (which owns 4.9% of OQGN) to jointly develop the hydrogen transportation network in Oman.

OQGN will develop an optimal hydrogen pipeline network to cater to announced and future blocks, taking advantage of economies of scale and right-of-way efficiencies to lower transportation costs.

OQGN is also committed to sustainability, aiming for Net-Zero emissions by 2050. "The company’s comprehensive decarbonisation strategy targets a 43% reduction in overall scope 1 and 2 emissions between 2021 and 2023, demonstrating a tangible commitment to reducing its environmental impact," Al Abdali noted. Additionally, OQGN’s initiatives to improve energy efficiency in office buildings and reduce flared gas emissions reflect a holistic approach to sustainable energy practices.

With a legacy of reliability, a forward-looking vision for sustainability, and an experienced management team driving transformative projects, OQGN is set to shape the future of energy infrastructure in Oman. By embracing growth opportunities, sustainable practices, and cutting-edge technologies, OQGN is leading the way towards a greener and more efficient energy ecosystem in the Sultanate of Oman.

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