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OQGN to lead development of Oman’s CO₂ pipeline network

The move marks a major step in supporting Oman’s ambitions in carbon capture, utilization and storage, as well as advancing low-carbon industrial projects.

TAS News Service

info@thearabianstories.com

Saturday, August 30, 2025

MUSCAT : OQ Gas Networks (OQGN), the operator of Oman’s national gas transmission system, has been officially designated to build and manage the country’s first carbon dioxide (CO₂) pipeline network. The move marks a major step in supporting Oman’s ambitions in carbon capture, utilization and storage (CCUS), as well as advancing low-carbon industrial projects.

Announcing the initiative during its half-year results briefing, OQGN said the network will provide essential infrastructure for industries planning to capture and reuse carbon emissions. As the national CO₂ transporter, the company will be responsible for owning, operating and maintaining the pipeline system.

The master plan for the network is already under review, with a northern corridor identified as an early opportunity. This would initially involve transporting captured CO₂ from a power plant to nearby enhanced oil recovery (EOR) sites operated by Occidental of Oman. OQGN is working closely with Oxy to design an integrated value chain covering both transportation and commercial frameworks.

The network is also expected to serve future producers of blue hydrogen and blue ammonia, as well as heavy industries such as steel, cement, petrochemicals and power generation, which are exploring CO₂ capture as part of their decarbonization strategies.

To guide the rollout, OQGN is collaborating with the Ministry of Energy and Minerals on a National CCUS Regulatory and Policy Framework. Under this structure, OQGN leads the CO₂ transportation workstream, Oxy oversees carbon capture, Petroleum Development Oman manages storage, and Shell is responsible for blue fuels and synthetic products.

Beyond CO₂, OQGN is advancing a hydrogen transport master plan to support the Sultanate’s green hydrogen projects. A feasibility study, led by Hydrom, is underway to examine the technical, financial and legal aspects of creating a shared hydrogen pipeline network that leverages economies of scale and existing infrastructure corridors.

By spearheading these initiatives, OQGN is positioning itself at the heart of Oman’s energy transition, enabling both emissions reduction and new low-carbon growth opportunities.

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