Oman’s OQGN to expand network as demand grows

State-owned OQ Gas Networks (OQGN), the pipeline subsidiary of Oman energy major OQ, is enhancing its gas network capacity as part of a major infrastructure expansion strategy.

A new 193km loop line from Fahud to Sohar, described as “one of the largest ever”, will be constructed to address rising energy needs in the Suhar and Ibri regions, Oman Daily Observer newspaper reported.

The new line will add nine million metric standard cubic metres per day to OQGN’s northern gas network capacity, boosting its reliability and efficiency, said the company CEO Mansoor Al Abdali.

The project is scheduled for completion by 2027.

OQGN, listed on the Muscat stock exchange in October 2023, owns and operates the Gulf state’s over 4,000km long gas pipeline grid.

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As part of its growth plans, OQGN aims to extend its pipeline network to 4,222km by the end of 2024, with further expansions continuing through 2027.

Network capacity is forecast to increase from 69.3 billion standard cubic metres (SCM) in 2023 to 79.7 billion SCM by 2027, while the volume of gas transported is projected to grow from 40.5 billion SCM to 45.6 billion SCM during the same period.

In July OQGN secured $1.2 billion in financing through agreements with 16 local and regional banks to support its ongoing operations and refinancing initiatives.