OQGN firms up planning for Oman's H2 pipeline network
MUSCAT: OQ Gas Networks (OQGN), Oman's National Infrastructure Provider for hydrogen pipelines, has committed to leveraging its expertise as the country's sole gas transportation operator to drive down the Levelized Cost of Hydrogen (LCOH) production—an essential factor in advancing Oman's green hydrogen economy.
Majority state-owned OQGN – part of OQ Group – also announced that it is collaborating with various government and public sector stakeholders in the development of hydrogen pipeline infrastructure that will support the growth of the green hydrogen industry in Oman.
The revelations came during a discussion session hosted recently by publicly-listed OQGN with a focus on its financial and operational performance during 2024.
'OQGN has been one of the leading companies working with the government and other main stakeholders to grow and enable the energy transition, and specifically to enable the green hydrogen economy in Oman,' an official said.
'Oman has strong ambitions to be an exporter of green energy, whether as green hydrogen or its derivatives. We have positioned ourselves to enable this to happen, and to be the infrastructure provider for transportation of hydrogen.'
In its capacity as National Infrastructure Provider for hydrogen pipelines, OQGN has been liaising with Hydrom – the orchestrator of Oman's green hydrogen industry – on the master-planning of the pipeline network. 'OQGN is actively involved in Hydrom's feasibility study, aligning on technical, commercial, financial and legal considerations,' the company noted in a presentation.
'We are one of the first companies to sign an MoU with (Hydrom) and we've been working very diligently with them in support of the (national) goal to produce and export about 1 million tonnes per annum of green hydrogen by 2030, rising to 8 million tonnes by 2050 – quantities that mean potential pipeline volumes for us at OQGN,' an official explained.
'In addition, we have conducted a techno-commercial strategic study to look at how we can position ourselves, the business models we can employ here, the potential impacts on us, and obviously what are the revenues we can see from this very attractive business opportunity.'
Furthermore, OQGN is working with Hydrom to finalize its pre-FEED study for a Common Use Infrastructure (CUI) system, which will support green hydrogen projects across allocated and future government-awarded land blocks. OQGN's role is to develop and operate pipeline networks that will transport green hydrogen from these land blocks to a dedicated zone planned near the Port of Duqm for the further processing of these green molecules into derivatives like green ammonia and green methanol, among other commodities for export. Part of these green molecules will be used as fuel to power a number of hard-to-abate industries like steel and aluminium.
'OQGN is planning to develop an optimal hydrogen pipeline network to cater to announced and future blocks, taking advantage of economies of scale, and Right of Way (ROW) efficiencies to lower transportation costs,' the company added.
OQGN currently owns and operates Oman's 4,235km-long gas transportation network, delivering natural gas as fuel and feedstock to 130 major customers, including Power & Desalination plants, Refineries and Petrochemicals projects, Fertilizers and Chemicals manufacturers, Steel and Cement plants, and assorted industrial parks – distributed across the country.
2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (Syndigate.info).
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Zawya
6 hours ago
- Zawya
Oman likely to award Port Sultan Qaboos upgade consultancy in Q4 2025
Oman's Ministry of Transport, Communications and Information Technology is expected to award the consultancy tender for the upgrade of Port Sultan Qaboos in Muscat in the fourth quarter of 2025, a source aware of the details said. The tender, released on 12 June 2025, calls for technical bids by 24 July and commercial bids by 10 August. 'The consultancy services contract for the construction of a breakwater, a fixed quay, and reclamation works at the Port is expected to be awarded in October 2025,' the source said, adding that completion timeline is the first quarter of 2027. As of 23 June 2025, a total of 14 local and international firms had purchased the tender documents. The contract scope includes: Project and contract management services Site assessments covering access, utilities, and environmental and social impact Concept master planning Preparation of EPC tender documents for construction Optional services include managing investment opportunity bids, bid evaluations, design review, and construction supervision. The upgrade project aims to transform Port Sultan Qaboos into a national hub for cruise tourism. (Reporting by Deva Palanisamy; Editing by Anoop Menon) (
Zawya
10 hours ago
- Zawya
National Finance introduces device E-Financing via Thawani Store in collaboration with Thawani
Muscat: Driven by its commitment to delivering seamless and customer-centric financing solutions, National Finance, the Sultanate of Oman's leading finance company, has recently launched a new e-financing service for mobile phones and electronic devices via the Thawani Store, a newly introduced digital marketplace integrated within the Thawani mobile application. This strategic initiative is the result of a collaboration with digital payments platform Thawani. The launch marks a key milestone in National Finance's ongoing mission to offer simple, affordable, and accessible financing solutions that empower customers to enhance their lifestyles with confidence and financial ease. In commemoration of the launch, a special promotional offer was introduced, featuring discounts of up to 15% on mobile phones, available from 22 to 28 June, giving customers an added incentive to explore the new financing experience. Through this collaboration, National Finance will provide flexible monthly installment plans via e-financing for a wide range of smart phones and electronic devices available on the Thawani Store, making cutting-edge technology more accessible and affordable for a wider audience. Customers can take advantage of financing tenures of up to 24 months, making monthly payments more affordable and manageable. Adding to the convenience, devices purchased through the Thawani store are delivered directly to customers' doorsteps, enhancing ease and enriching the overall digital shopping experience. In its initial phase, the Thawani Store will feature a curated range of mobile devices, with National Finance's financing options seamlessly embedded within the app's checkout process. This fully digital, streamlined experience aligns with the growing demand for convenient payment solutions and supports Oman's broader push toward financial inclusion and digital transformation. Commenting on the launch, Mr. Tariq Sulaiman Al Farsi, Chief Executive Officer at National Finance, remarked: "At National Finance, we take pride in our deep understanding of our customers' aspirations and their pursuit of a better quality of life. This understanding inspires us to continuously innovate and deliver financing solutions tailored to our customers' financial plans. With our flexible installment plans, customers can now enjoy the latest technology through affordable monthly payments empowering them to upgrade with confidence. This partnership with Thawani allows us to engage a new generation of tech-savvy consumers who value convenience, flexibility, and accessibility when purchasing essential devices.' National Finance's Consumer Durables Financing solutions play a vital role in advancing financial inclusion across diverse communities, making everyday luxuries more attainable for individuals from all walks of life through tailored installment plans. This strategic partnership further enhances the digital marketplace by expanding access to credit via seamless digital channels reaffirming the company's commitment to delivering fast, easy, and flexible financing experiences. Promoting a culture of responsible borrowing, while empowering customers to realize their lifestyle aspirations through its wide range of Consumer Durables Finance options, National Finance continues to lead as the preferred financing provider across the nation, reinforcing its position as a Partner for Growth for all.
Zawya
10 hours ago
- Zawya
Oman's fiscal consolidation a model of economic reform: World Bank
MUSCAT - Oman's fiscal consolidation journey has been hailed by the World Bank as a notable example of effective economic reform and responsible fiscal management. In its latest Gulf Economic Update, published by the Economic Policy Unit of the World Bank Group for the MENA region, the multilateral institution highlights the measures implemented by the Omani government to restore fiscal balance following the twin shocks of the 2014 oil price collapse and the Covid-19 pandemic. 'Oman has made substantial progress in enhancing its economic resilience and building a foundation for sustainable growth,' the report stated. 'Like other GCC countries, it has grappled with the challenge of reducing dependence on oil revenues while managing public finances amid volatile global oil prices. During previous periods of low oil prices, Oman experienced twin deficits and relied heavily on borrowing to cover fiscal gaps. In recent years, however, it has undertaken significant steps to reduce its reliance on oil and strengthen fiscal sustainability.' The report cited major reforms introduced under Oman Vision 2040 and the 2020–2024 Medium-Term Fiscal Plan (MTFP) as critical to achieving this progress. These initiatives helped diversify revenue streams, improve public spending efficiency, and manage oil windfalls more prudently. 'These reforms have delivered tangible results,' the report emphasised. 'Since 2022, Oman has markedly improved its fiscal position, notably by reducing public debt through the strategic deployment of oil windfalls. This has expanded fiscal space and enhanced the country's capacity to withstand external shocks. Oman's experience stands out as a model of effective fiscal consolidation and economic reform.' The World Bank also noted Oman's gradual progress in economic diversification. While the hydrocarbon sector continues to dominate, its share of GDP has steadily declined over the past two decades in favour of services, albeit at a modest pace. Within the services sector, wholesale and retail trade, public administration, and defence remain dominant, while sectors like tourism and ICT have yet to significantly expand their economic footprint. Manufacturing has grown in importance but remains concentrated, with nearly 40 per cent of output derived from chemicals and related products. A particularly positive development is the growth of non-hydrocarbon exports, which now account for roughly one-third of total exports, compared to just 12 per cent in the early 2010s. 'Key non-oil exports include chemicals, base metals (especially aluminium), plastics, and mineral products,' the report noted. 'Re-exports — mainly vehicles, electricals, and machinery — have declined in share over the past decade. Oman's key export destinations include the UAE, Saudi Arabia, the US, and India. As for oil exports, China remains the dominant market, receiving nearly 94 per cent of Oman's crude exports.' The report also credited the MTFP with delivering successive fiscal surpluses since 2022 and significantly reducing public debt. 'MTFP targets for fiscal balance were met — and even exceeded,' the report stated. 'Public spending was significantly curtailed, dropping by around 16 per cent of GDP during the five-year period. Public debt declined sharply from approximately 68 per cent of GDP in 2020 to an estimated 35 per cent in 2024, reflecting prudent fiscal management and accelerated debt repayments.' To sustain momentum, the report recommended further domestic revenue mobilisation, with measures already underway — such as the draft Personal Income Tax (PIT) bill currently under consideration. 'Despite the progress made, Oman's economy remains sensitive to global oil prices and demand,' the report cautioned. 'Further efforts to broaden non-oil revenues and continue rationalising public spending — while improving its efficiency and equity — will require a balanced approach that ensures societal buy-in. Strengthening institutional capacity, enhancing governance, and fostering a culture of fiscal responsibility are also essential to create additional fiscal space for growth-enhancing investments and ensure long-term fiscal sustainability.' According to the World Bank, Oman's economic growth is projected to gradually accelerate, rising from 1.7 per cent in 2024 to 3 per cent in 2025, 3.7 per cent in 2026, and 4 per cent in 2027. The rebound will be driven by a 2.1 per cent increase in oil GDP in 2025 and 3.4 per cent growth in non-oil sectors, particularly in construction, manufacturing and services. 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
