OQGN to Operate Oman’s CO₂ Pipeline Network: What This Means for Investors and Business Growth in Oman
MUSCAT, AUG 28 — OQ Gas Networks (OQGN), the operator of Oman’s national gas transportation system, has announced plans to develop a CO₂ pipeline network aimed at supporting the decarbonisation efforts of early adopters of Carbon Capture, Utilisation and Storage (CCUS) technology. This initiative is a crucial step towards achieving Oman’s Net-Zero objectives.
OQGN, a publicly traded company under the OQ energy group, revealed these plans during a recent conference call reviewing its financial and operational performance for the first half of 2025.
In a company presentation, officials explained, “OQGN is conceptualising a CO₂ pipeline network to meet the needs of first movers. We are collaborating with key partners to advance the Northern CCUS opportunity. The initial development phase targets the potential capture of CO₂ emissions from a power plant.”
Furthermore, OQGN is partnering with Occidental of Oman (Oxy) to establish an integrated CCUS value chain that addresses Oxy’s requirements for CO₂-Enhanced Oil Recovery (EOR). This includes developing the commercial framework and infrastructure for a CO₂ transportation pipeline. Oxy plans to inject captured CO₂ into reservoirs to enhance crude oil recovery while simultaneously storing the CO₂ underground.
An OQGN official elaborated, “Our current focus is on a northern Oman opportunity that supports an Oxy EOR project. The plan involves creating a safe and efficient system to transport CO₂ from emission sources in Suhar and Ibri to a northern block operated by Oxy for EOR purposes. Both teams, with policymaker support, are progressing towards a feasibility or concept realization study.”
Other potential early users of the CO₂ pipeline include developers of blue hydrogen and blue ammonia projects, which produce these fuels from natural gas while capturing the resulting CO₂ for storage or utilisation. Energy, industrial, and petrochemical companies—such as oil refineries, power plants, and steel or cement manufacturers—are also expected to participate, capturing CO₂ emissions as part of their CCUS strategies.
Officials highlighted OQGN’s role in supporting the Omani government’s national decarbonisation agenda. In particular, OQGN collaborates with the Ministry of Energy and Minerals on establishing a National CCUS Regulatory and Policy Framework. OQGN leads the CO₂ Transportation Workstream, while other key stakeholders focus on CO₂ Capture (Oxy), CO₂ Storage (Petroleum Development Oman), and Blue Products and Synthetic Fuels (Shell).
Preliminary master plans for the CO₂ pipeline network have been assessed, and OQGN has been formally designated as Oman’s CO₂ transporter, responsible for owning, operating, and maintaining the country’s CO₂ transmission infrastructure.
Separately, OQGN is advancing master planning for a hydrogen pipeline network designed to serve both current and future green hydrogen projects. This network aims to optimize economies of scale and Right of Way efficiencies to reduce transportation costs.
Additionally, OQGN is participating in a feasibility study led by Hydrom, the coordinator of Oman’s green hydrogen industry, to address technical, commercial, legal, and financial considerations.
OQGN is officially recognised as Oman’s CO₂ transporter, entrusted with the ownership, operation, and maintenance of the national CO₂ transmission network.
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OQ Gas Networks’ initiative to develop a national CO₂ pipeline network positions Oman at the forefront of CCUS-driven decarbonisation, unlocking new investment opportunities in clean energy and enhanced oil recovery (EOR). Businesses in energy, petrochemical, and industrial sectors should strategically explore partnerships in this infrastructure to capitalize on early adoption benefits and government-backed regulatory frameworks. For entrepreneurs and investors, the evolving CO₂ and hydrogen transport networks present high-potential gateways for innovation, emission reduction technologies, and sustainable resource management in Oman’s transition to net zero.
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