Oman’s Gas Network Expansion to 4,623km by 2027: What It Means for Investors and Business Growth Opportunities
MUSCAT: OQ Gas Networks (OQGN), the owner and operator of Oman’s natural gas transportation system, expects its national network to expand to 4,623 kilometers by 2027, up from 4,235 kilometers as of December 2024. This growth results from several new pipeline projects essential to supporting the increasing energy demands of the country’s industrial hubs.
Company executives revealed details of OQGN’s planned investments for the next three years during a recent conference call with market analysts, focusing on the company’s financial and operational performance for the first half of 2025.
Significant projects completed or commissioned in H1 2025 include the Central Rich and Lean Gas project, which segregates rich and lean natural gas from the central region and channels it to the Sur Gas Supply Station via a new 48-inch, 65-kilometer pipeline. This project enhances the utilisation of rich gas by LNG and LPG plants.
Another major initiative is the commissioning of a 177-kilometer pipeline in southern Oman that strengthens gas supply to Dhofar Governorate’s consumption centers. Additionally, a 17-kilometer pipeline was inaugurated to improve gas delivery to the Duqm Special Economic Zone (SEZ). Further capacity expansion projects aiming to boost supply to the SEZ are also planned.
During H1 2025, OQGN connected the industrial facilities of Oman Oilseeds and Oman Sugar Refinery at SOHAR Port and Freezone to its network.
New pipeline projects set to drive network expansion include a 42-inch, 193-kilometer pipeline from Fahud to Suhar, designed to enhance gas supply to Suhar’s industrial hub. Another pipeline from Fahud will serve the emerging industrial hub in Ibri. Egyptian contractor Petrojet has been awarded the contract for these projects, valued at approximately RO 105 million. Once operational, these pipelines will support energy provision to Suhar and the low-carbon LNG terminal currently under construction at SOHAR Port and Freezone, promoted by TotalEnergies and OQ.
Currently, around 130 consumers—including power and water sectors, upstream oilfield operations, refining and petrochemicals, heavy industries, cement plants, and free zones—are connected to OQGN’s nationwide network.
As of June 30, 2025, gas supply to these consumers reached approximately 20.6 billion cubic meters (bcm), with total 2025 supply projected at 44.0 bcm. The network’s current capacity stands at 70.3 bcm, highlighting significant surplus capacity. By 2027, this capacity is expected to increase to 74.5 bcm following the completion of ongoing and new medium-term pipeline projects.
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The planned expansion of OQ Gas Networks’ infrastructure to 4,623 km by 2027 signals significant growth in Oman’s energy supply capacity, especially for industrial hubs like Suhar, Duqm, and Dhofar. This creates key opportunities for businesses and investors to tap into the country’s expanding industrial and low-carbon energy sectors, particularly given the strategic link to the new LNG terminal. Smart entrepreneurs should consider aligning ventures with these energy projects to leverage Oman’s surplus network capacity and government-backed industrial expansion.
