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Oman’s Duqm emerges as global hub for green steel production; Meranti secures gas allocation

Duqm's Special Economic Zone (SEZAD) is cementing its reputation as a global leader in low-carbon heavy industry, with Singapore-based Meranti Green Steel (MGS) announcing a significant step in its planned green steel project in the Sultanate.

TAS News Service

info@thearabianstories.com

Wednesday, July 9, 2025

MUSCAT – Meranti Green Steel confirmed that it has received a provisional commitment for natural gas supply from Oman’s Integrated Gas Company (IGC), the nation’s sole gas aggregator and supplier.


The announcement, shared by the company on Tuesday, July 8, marks a key milestone in the development of what is expected to be a cornerstone project in the region’s push toward green industrialization. While specific investment figures and project capacity remain under wraps, Meranti confirmed it has secured a conditional allocation of natural gas from the Integrated Gas Company (IGC), Oman’s official aggregator and distributor of natural gas.


“With the project site finalized and feedstock supply now in place, the foundation for our green iron operations in Duqm is solid,” Meranti stated in its update. The company also revealed that it is actively engaging with several prospective green hydrogen partners and financial backers, including KfW IPEX-Bank, a prominent German export financing institution.


The development adds momentum to Duqm’s emergence as a regional hub for decarbonized heavy industry. The area is fast becoming a magnet for investments in steel and aluminium manufacturing—traditionally high-emissions sectors—thanks to the growing availability of clean energy sources like green hydrogen.


Meranti’s Omani project will complement its integrated green steel development underway in Rayong, Thailand. That facility—set to launch by 2028—will produce certified green Hot Rolled Coil (HRC) using DRI, hot briquetted iron (HBI), electric arc furnaces (EAF), and a hot strip mill, with a planned output of 2.5 mtpa.


“The Duqm green iron facility is a critical part of our global value chain,” Meranti said, emphasizing its role in supplying both Meranti’s Thailand plant and European steelmakers aiming to decarbonize.

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