Engaging with Meranti: Key Insights on the Duqm HBI Project and Its Impact on Oman’s Business Landscape
MUSCAT: In a bid to enhance collaboration with key international investors, a joint delegation from the Integrated Gas Company (IGC) — Oman’s sole aggregator and supplier of natural gas — and Invest Oman, the nation’s leading investment promotion agency, recently met with officials from Meranti Green Steel in Thailand. This meeting aimed to further develop plans for a significant green iron project within the Sultanate.
The proposed initiative includes a Hot Briquetted Iron (HBI) plant with an initial capacity of 2.5 million tonnes per annum (mtpa), to be located in the Special Economic Zone at Duqm (SEZAD). The project will initially rely on a balanced combination of natural gas and green hydrogen, gradually increasing the hydrogen proportion to facilitate lower-carbon green steel production.
In line with Meranti’s strategy of separating iron production from steelmaking, a portion of the low-carbon HBI produced at Duqm will be exported to a green steel mill currently under development in Rayong, Thailand. The remainder will be supplied to European buyers.
The IGC, affiliated with Oman’s Ministry of Finance, stated that discussions with Meranti revolved around gas allocation, operational developments, and the strategic framework for future project phases.
“The meeting covered the technical and regulatory details concerning gas allocation and operational readiness. The Integrated Gas Company showcased its established systems designed to ensure supply efficiency, operational reliability, and sustainability, which are critical for the project’s successful execution,” IGC noted.
The state-owned gas aggregator further emphasized: “This engagement underscores IGC’s commitment to enhancing the reliability of Oman’s industrial gas infrastructure and supporting impactful industrial projects that optimize national resource utilization, in line with Oman Vision 2040.”
Additionally, IGC announced its intention to sign several Gas Purchase and Allocation Agreements with prominent industrial companies on November 2, coinciding with National Day celebrations. These agreements will benefit various sectors, including petrochemicals, fertilizers, pharmaceuticals, iron and steel, food and agriculture, power generation, cement, and minerals, with total investments exceeding RO2 billion ($5.2 billion).
Special Analysis by Omanet | Navigate Oman’s Market
The recent engagement between the Integrated Gas Company and Meranti Green Steel signals a transformative opportunity for Oman’s industrial landscape, positioning the Sultanate as a hub for sustainable steel production. This creates significant opportunities for businesses in related sectors, especially those focused on green technologies and resource efficiency. Smart investors should consider aligning with initiatives that support low-carbon strategies and leveraging potential government incentives tied to Oman Vision 2040.
