Oman Announces New Pipeline Project In Dhofar, Boosting Gas Capacity By 60%

OQ Gas Networks (OQGN), the sole operator of Oman's Natural Gas Transmission Network, revealed plans to launch the Saib Project on August 26. This new 208km gas pipeline in the Dhofar Governorate is set to enhance the region's gas network capacity significantly.

The Saib Project will be inaugurated under the patronage of H H Sayyid Marwan bin Turki al Said, Governor of Dhofar. The event will also see attendance from government officials, community leaders, OQGN's Board of Directors, key stakeholders, and contractors.

This strategic initiative involves an investment of RO76mn and aims to boost the gas network's capacity in Dhofar by 60%. The current capacity of 10mn cubic meters per day will rise to 16mn cubic meters per day. This expansion addresses increasing natural gas demand driven by population growth, urbanisation, and economic development.

The project comprises two loops: Loop 1 spans 32km at Hubara in Haima, while Loop 2 covers 175km from Harweel to Raysut station in Salalah. Together, these loops add up to a total of 208km of a new 32-inch pipeline running parallel to an existing 24-inch pipeline.

In the first half of 2024, OQGN extended its network by 177km with the commissioning of the South Grid Project. This loop line was designed to increase capacity in Oman's southern region. According to OQGN's Q2 2024 financial report, this addition has been instrumental in meeting regional energy needs.

Currently, OQGN operates a vast gas pipeline network stretching across Oman with a total length of 4,223km. This extensive infrastructure supplies gas to various sectors including power plants, water desalination facilities, cement and aluminum factories, fertiliser and methanol plants, refineries, steel factories, and oil companies.

OQGN prides itself on maintaining high operational standards. Over the past decade, it has achieved a remarkable track record with a gas availability rate of 99.99% and no interruptions in gas supply recorded in 2023. The company remains committed to innovative and sustainable solutions for managing and developing the Natural Gas Transmission Network.

The company's latest financial report highlights that OQGN transported 21.2bn cubic meters of gas during the first half of 2024. This marks an increase from the 19.4bn cubic meters transported during the same period in 2023. Additionally, June 2024 saw a record high gas delivery of 131mn standard cubic meters per day.

OQGN holds a natural monopoly over critical gas transportation infrastructure in Oman as it is the exclusive owner and operator of the Natural Gas Transmission Network. This position allows OQGN to lead effectively in managing and expanding this essential infrastructure.

The Saib Project represents another step forward for OQGN as it continues to meet growing energy demands while ensuring reliable service across Oman’s diverse industrial sectors.