OQGN: Projects Underway to Boost Oman’s Gas Transportation Capacity

OQ Gas Networks (OQGN), the majority state-owned operator of Oman’s gas transportation network, is currently implementing a portfolio of ten projects to expand capacity and meet emerging demand across its nationwide footprint. According to the publicly traded company – part of OQ Group – the list of ongoing projects includes a 48-inch CRL (also known as the Central-Rich-Lean gas) project, which increases system capacity by extending the 48-inch loop line (65 km) and developing a Gas Network Hub in Central Oman. Also under development is a 42-inch Fahud-Suhar Loop Line, envisaged as part of OQGN's Long Term Development plan, which will add 9 million standard cubic metres per day (MMSCMD) to the north gas network by 2027, supporting growth in Suhar and Ibri. The ongoing initiatives come on top of four projects that were delivered by OQGN during 2024. They include the 17 km pipeline project in Duqm, and the Saib Project which added 208 km of 32-inch pipeline in the Dhofar Governorate to increase the south grid capacity by 60 per cent. Significantly, the new pipeline additions of 2024 have bolstered OQGN’s network length to a total of 4,235 km, up from 4,045 km in 2023, representing a growth of 4.7 per cent. Network capacity also rose 2.6 per cent to 71.1 billion cubic metres (BCM), up from 69.3 BCM in 2023, OQGN stated in its financial report for 2024. Natural gas transported during 2024 rose 6.1 per cent to 42.98 BCM, up from 40.5 BCM in 2023.

Also, during the year, the operator achieved a record single-day delivery of 131.4 million cubic meters (MCM), which was 4.8 per cent higher than the previous record. Buoying the outlook for the company’s long-term growth is its strong positioning in the natural gas transportation space, as well as the emerging green hydrogen and decarbonisation landscape. “Oman’s gas demand is expected to remain stable over the next two decades, driven by robust LNG exports and natural gas-based electricity generation, which together form a solid foundation for sustained demand. With a natural monopoly in midstream gas transportation, OQGN is well-positioned to benefit from stable demand. Looking ahead, Oman Vision 2040 focuses on economic diversification, particularly in green hydrogen and CO₂ transportation, where OQGN’s expertise makes it the preferred operator to support and enable Oman’s hydrogen ambitions,” OQGN noted in its Annual Report. To this end, OQGN aims to solidify its position over the next five years as a critical infrastructure provider by expanding its existing network, becoming the partner of choice in energy transition projects, and emphasizing its role in sustainability. “Under its strategy, OQGN is set to expand core gas midstream services while advancing into hydrogen and Carbon Dioxide (CO2) transportation. As part of Oman’s green hydrogen strategy, the Company has signed a MoU with Hydrom in 2024 and was appointed the National Infrastructure Provider for Hydrogen (H₂) pipelines.” Furthermore, under a separate MoU signed with Oxy Oman, the company is also providing regulatory and techno commercial advisory support on CO₂ transportation with the goal of developing a CCUS value chain in Oman. Additionally, OQGN is collaborating with Shell, OQ, and PDO on the Blue Horizons low-carbon and ammonia pre-FEED project to explore bankable commercial models