Meranti Pushes Forward Duqm Iron Project: What It Means for Investment Opportunities in Oman
MUSCAT: Meranti Green Steel is intensifying efforts to reach critical development milestones ahead of a highly anticipated Final Investment Decision (FID) for its groundbreaking low-carbon iron production facility in Oman. The project, located in the Duqm Special Economic Zone, aims to produce 2.5 million tonnes per annum (mtpa) of hot briquetted iron (HBI).
According to Meranti CEO Dr. Sebastian Langendorf, key milestones include securing financing, obtaining necessary permits, advancing engineering work, and initiating the Engineering, Procurement, and Construction (EPC) tendering and contract finalisation processes. These steps are essential for preparing the project for bankability and execution readiness.
“Over the next three to four months, we will finalise the financing package, encompassing both debt and equity, complete permitting, progress engineering, and launch the EPC tender process,” Dr. Langendorf stated. He also highlighted ongoing efforts to convert existing term sheets related to upstream supply, downstream offtake, and other agreements into binding long-form contracts. Infrastructure planning is proceeding concurrently as part of the engineering phase.
During his recent visit to Oman—shortly after Meranti’s office opening in Muscat—Dr. Langendorf engaged with the Public Authority for Special Economic Zones and Free Zones (OPAZ), Hydrom, Invest Oman, Integrated Gas Company (IGC), and current business partners to prepare for the next project phase leading to FID and implementation.
Preparations for the multibillion-dollar Duqm complex are progressing well, with a formal EPC tender expected to launch soon. The company has identified several target international EPC contractors, prioritising those with proven collaboration experience, especially with Meranti’s technology provider, to minimise delivery risks and ensure timely, on-budget, and safe project completion.
Meranti is committed to involving local companies, particularly at the subcontractor level, in civil, mechanical, electrical, and installation works. The company is actively facilitating connections between local firms and potential EPC partners.
Welcoming a new strategic partner, whose identity will be revealed soon, Dr. Langendorf mentioned the possibility of including an Omani equity partner such as the Oman Investment Authority (OIA) or its subsidiaries. He emphasised the importance of a balanced shareholder structure combining international and local partners, each bringing strategic value either through supply chain integration or local market expertise.
Meranti is finalising binding agreements that will clarify the promoter company’s equity structure. The firm has secured long-term offtake commitments for the full 2.5 mtpa output of its initial green HBI module, allocated among international partners including Thyssenkrupp Materials Trading, INTERFER, and Glencore, as well as its own downstream steel facility in Thailand, with provisions for potential expansion.
On financing, Meranti is advancing international arrangements with KfW IPEX-Bank as lead arranger and planned export credit agency (ECA) support, while also engaging local banks for participatory roles. Dr. Langendorf met with several local banks during his visit, indicating promising potential for domestic financial involvement.
Overall, Meranti Green Steel is making significant progress across multiple fronts to ensure readiness for the upcoming FID and successful project execution in Oman.
Special Analysis by Omanet | Navigate Oman’s Market
Meranti Green Steel’s imminent Final Investment Decision on a 2.5 mtpa low-carbon iron plant in Duqm signals a transformative opportunity for Oman’s industrial sector, potentially positioning the Sultanate as a regional leader in green steel production. Local businesses stand to benefit significantly through subcontracting opportunities and partnerships, while smart investors should watch for strategic equity openings, including possible involvement by Omani entities like the Oman Investment Authority. The project’s success hinges on securing balanced international-local financing and partnerships, making this an opportune moment for investors to engage early in Oman’s evolving green industrial landscape.
