Methanol and Ammonia Exports Boost Oman’s Industrial Growth: What Investors and Entrepreneurs Need to Know
MUSCAT: OQ Base Industries (OQBI), a subsidiary of the Omani-owned integrated energy group OQ, has established itself as a vital contributor to Oman’s non-oil export growth, with methanol and ammonia products leading a robust performance in the first half of 2025.
The state-backed petrochemical producer reported revenues of RO 112.4 million for the six months ending June, marking a 7.7% increase compared to the previous year. Methanol sales surged by 46%, adding RO 3.7 million, while ammonia sales rose by 38%, contributing RO 3.1 million. These two commodities were the primary drivers of OQBI’s revenue growth.
Plant operations surpassed expectations, with utilisation rates reaching 103% for methanol and 104% for ammonia, supported by an average availability of 99.3%. This resulted in total production of 780,460 metric tonnes, a 3.9% increase from last year and beyond the company’s internal business plan targets.
An industry analyst commented, “These figures demonstrate that Oman’s industrial exports are increasingly anchored in methanol and ammonia, highlighting their growing significance to the national economy beyond the traditional oil and gas sectors.”
Net profit rose significantly to RO 23.4 million, largely driven by enhanced operational efficiency and loan refinancing. However, experts emphasize that the true importance of these products lies in their understated role in strengthening Oman’s balance of trade and advancing non-oil diversification goals in line with Oman Vision 2040.
OQBI, Oman’s only integrated producer of methanol, ammonia, and LPG, also recorded a 16% increase in LPG revenue, supported by higher sales from carry-over inventory. With global demand for ammonia in fertilizers and methanol in clean fuels and chemicals continuing to grow, Oman’s petrochemical exports are poised to maintain momentum in the latter half of 2025.
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OQ Base Industries’ strong first-half 2025 performance highlights Oman’s strategic shift towards non-oil export diversification, with methanol and ammonia driving significant revenue growth and operational efficiency. For businesses and investors, this underscores a promising opportunity in petrochemical sectors aligned with Oman Vision 2040, positioning Oman as a competitive global supplier in clean fuels and fertilizers. Smart investors should consider scaling into these high-demand, value-added chemical exports to leverage growth and support the nation’s economic transformation.
