MGS Announces Progress Plans to Invest in Green Steel Project in Duqm

Singapore-based Meranti Green Steel (MGS), a leading player in low-carbon steel production in the Asia-Pacific region, has announced further progress in its plans to invest in a major green steel project at the Special Economic Zone at Duqm (SEZAD) in southeastern Oman. Project capacity details and investment figures have not yet been disclosed. However, the company announced in a post on Tuesday, July 8, 2025, that it has received a provisional commitment for the supply of natural gas for the project from the Omani authorities.

“Meranti Green Steel has received the conditional gas allocation from IGC in Oman. With the project site confirmed and raw material supply in place, the foundation for our green iron production in Duqm is now established,” Meranti commented in the post, referencing the Integrated Gas Company (IGC)—the sole aggregator and supplier of natural gas in the Sultanate of Oman. The company further noted: “Discussions with a range of potential green hydrogen partners are underway, and we are engaging closely with our financing partners, including KfW IPEX.” 

The latter refers to the import-export financing arm of KfW IPEX-Bank, a major German-based financial institution. The announcement underscores Duqm’s rising international profile as a prime destination for investment in so called ‘hard-to-abate’ sectors, particularly steel and aluminium manufacturing—industries traditionally associated with high carbon emissions. With several large-scale green hydrogen projects set to be implemented near Duqm, the anticipated availability of green hydrogen as a clean energy source is boosting the zone’s attractiveness as a hub for low-carbon heavy industry. Jindal Duqm Steel (formerly Vulcan Green Steel)—part of India’s Jindal Group—is already advancing construction work on the first phase of a 5 million tonnes per annum (mtpa) hydrogen-enabled green steel plant in Duqm, with an estimated investment of around US$3 billion.

In addition, two other international consortiums have announced plans to establish low-carbon iron projects in Duqm. Kobe Steel, in partnership with Mitsui & Co, has signed a memorandum of understanding (MoU) with Oman’s Public Authority for Special Economic Zones and Free Zones (OPAZ) and the Port of Duqm Company to explore a low-carbon iron metallics facility in the SEZ. The project aims to produce 5 million tonnes annually of direct reduced iron (DRI), starting with natural gas and transitioning to hydrogen in the future. Similarly, Brazilian mining giant Vale has announced plans to invest in a Green Metallic Mega Hub in Duqm, intended to produce low-carbon DRI as feedstock for steel mills across the wider Middle East region.

Meranti is concurrently developing an integrated green steel project in Rayong, Thailand, with a planned capacity of around 2.5 million tonnes per year. The facility, which integrates DRI, HBI (Hot Briquetted Iron), Electric Arc Furnace (EAF), and a Hot Strip Mill, will produce certified green Hot Rolled Coil (HRC) steel. Operations are scheduled to begin in late 2027 or early 2028. “The (Oman) green iron project is central to our integrated green steel value chain. It will not only feed our low emission steel plant in Thailand, but will also serve emerging HBI demand from European offtakers. With competitive access to gas and green hydrogen, we are confident that green iron from Oman can boost the competitiveness of European steelmakers and help secure jobs—not threaten them,” Meranti added in its post.