3 days ago
OQGN awards EPC contract for RO105mn loop line project
Muscat – OQ Gas Networks Company (OQGN), the sole operator of Oman's natural gas transportation network, has awarded contracts for the engineering, procurement, and construction (EPC) works, as well as the supply of line pipes for its second 193km-long Fahud–Suhar Loop Line Project.
In November last year, OQGN received regulatory approval to construct the new 193km loop line connecting Fahud to Suhar. The pipeline, which will have a diameter of 42 inches, is designed to strengthen Oman's natural gas infrastructure and support regional energy demands.
'OQ Gas Networks is pleased to announce the awarding of the tender for engineering, procurement, and contracting works for the 42-inch second Loop Line Fahud–Suhar Project to The Petroleum Projects Company Petrojet and Partners LLC,' OQGN said in a disclosure to the Muscat Stock Exchange on Wednesday.
The agreement was signed on June 17. 2025, the company confirmed. As part of the project execution strategy, OQGN has also awarded the supply of 193km of line pipe to Jindal Saw Limited.
'It is worth noting that the total project cost is approximately RO105mn, with a planned execution period of 24 months,' the company added.
The project cost will be incorporated into the company's Regulated Asset Base (RAB), and, like the rest of the RAB, the return on this investment will be calculated based on the weighted average cost of capital (WACC). The currently approved WACC under Price Control 3 is 7.79%, and it will remain in effect until 2027, according to OQGN.
The company stated that the Fahud–Suhar Loop Line Project is in line with its growth strategy and vision of leading the energy infrastructure sector.
Described as one of the largest initiatives sanctioned by OQGN since the implementation of the RAB framework, the project is expected to significantly boost gas supply capacity in the Suhar and Ibri regions. It supports Oman's long-term energy strategy and aligns with OQGN's infrastructure expansion objectives.
According to OQGN's earlier disclosure, the Fahud–Suhar Loop Line Project is scheduled for completion in 2027. Once operational, the new pipeline will increase the capacity of OQGN's northern gas network by 9mn standard cubic metres per day, further solidifying the company's role in meeting the growing demand from key industrial and power sectors.
OQGN, which operates the sultanate's only natural gas transportation network, currently manages over 4,000km of pipeline infrastructure across Oman. The network supplies gas to a wide array of critical industries, including power generation, water desalination, cement and aluminium production, fertiliser manufacturing, and petrochemical plants.
