OQGN Advances Northern Oman CCUS Hub Feasibility Study: What This Means for Investment and Business Growth in the Region
MUSCAT, MARCH 12 – OQ Gas Networks (OQGN), the sole owner and operator of Oman’s natural gas transmission system, is advancing its feasibility study for developing a Carbon Capture, Utilisation, and Storage (CCUS) ecosystem in the industrial hubs of northeastern Oman.
This initiative is part of three strategic CCUS hubs outlined in Oman’s Net-Zero strategy, which includes a plan to capture and transport CO₂ emissions from various sources to designated storage or utilisation sites via an approximately 800 km dedicated pipeline network.
“We are making substantial progress on the CO₂ front,” an OQGN official stated during a conference call with investors on March 11, 2026. The official noted that the feasibility study for the northern CCUS ecosystem is in advanced stages, with a decision expected by the end of the year regarding the final investment decision (FID), upcoming milestones, and potential impacts on OQGN’s profitability.
The discussion included OQGN’s CEO, Mansoor bin Ali al Abdali; Acting Chief Financial Officer, Sultan al Balushi; Chief Business Development & Commercial Officer, Saif al Hosni; and other senior officials.
The nationwide carbon-management framework revealed by OQGN last December envisions three distinct CCUS ecosystems:
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ال Northern CCUS Ecosystem aims to decarbonise the Sohar Industrial Area—Oman’s largest emissions cluster—and nearby Ibri. It involves securing consistent CO₂ supplies and transporting them through an estimated 300-km pipeline to storage or utilisation sites.
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ال Central CCUS Ecosystem will serve emitters in Al Duqm, with potential storage in Oman’s largest oil concession, Block 6. The pipeline is expected to span approximately 200 km.
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ال Southern CCUS Ecosystem targets the Salalah Industrial Area, channeling CO₂ to southern Block 6 storage sites within Petroleum Development Oman’s concession via an estimated 300-km pipeline. Studies indicate that for the Sur industrial hub, routing captured CO₂ to local sinks is more cost-effective.
OQGN officials shared that market interest calls for participation in the CCUS infrastructure have received responses, but current efforts are concentrated on the Northern Ecosystem due to its clear demand. Opportunities in the Central and Southern ecosystems remain under development.
Furthermore, the government and Oman Net-Zero Center are urging CO₂ emitters to explore carbon reduction methods, alongside considering regulatory measures such as incentives and taxes.
Securing government mandates for emerging energy infrastructure remains a top priority for OQGN. The company has been appointed the national champion for both green hydrogen and CO₂ transportation. Although growth in the green hydrogen sector has slowed due to market conditions, OQGN affirmed its commitment to lead development as opportunities arise.
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OQ Gas Networks’ advanced feasibility study on the Northern CCUS ecosystem signals a strategic leap towards Oman’s Net-Zero ambitions, offering businesses in the Sohar Industrial Area and beyond a pivotal opportunity to align with emerging carbon management regulations. Smart investors should closely watch the evolving CCUS hubs, especially in the north, as early participation could unlock value from infrastructure development and potential government incentives, while mitigating climate-related regulatory risks. This initiative also underscores Oman’s growing focus on integrating low-carbon technologies, positioning the country as a forward-looking energy market.
