Duqm Steel Project Construction Advances: Key Opportunities for Investors and Businesses in Oman
MUSCAT, MAR 14 — A significant milestone has been reached in the construction of the Jindal Steel Duqm low-carbon steel project with the arrival of a critical piece of equipment at the Port of Duqm. Kanoo Shipping, a renowned marine logistics provider, recently managed the delivery of a massive 935-metric-tonne reactor, signaling the project’s transition from heavy civil works to the installation of major equipment.
Jindal Steel Duqm, a subsidiary of India’s Naveen Jindal Group, is developing a low-carbon steel complex with an annual capacity of 5 million tonnes in the Duqm Special Economic Zone (SEZAD). The initiative represents an investment of approximately $3 billion.
The complex includes two Direct Reduction Iron (DRI) plants, each capable of producing 2.5 million tonnes per year. These plants will utilize Energiron technology, a gas-based DRI process that transforms iron-ore pellets or lump ore into high-purity metallic iron—referred to as DRI or hot-briquetted iron (HBI)—by removing oxygen using a reducing gas mainly composed of natural gas or hydrogen. This method replaces the traditional blast furnace process that uses coal. The technology, developed by Italian firms Tenova and Danieli Group, is marketed under the Energiron brand.
In September last year, these firms confirmed they secured firm orders for a second DRI plant at Duqm, featuring zero-reformer Energiron technology designed to achieve a metallisation rate of 94 percent. The project will harness Oman’s natural gas and renewable energy potential through hydrogen production. Additionally, carbon capture facilities—integrated as a core part of this technology—will enable the reuse of captured carbon, supporting Jindal Steel Duqm’s broader green steel ambitions.
Harssha Shetty, CEO of Jindal Steel Oman, stated in a recent interview with The Energy Year, a UK-based news portal, that the project’s first phase is scheduled to commence operations in early 2027. “Our green steel project in Al Duqm will be operational by Q1 2027. We have already made significant progress toward key milestones, placed all long-lead item orders, and completed payments to contractors. With the right partners now onsite, we are on track to begin production within the next 15 months,” he said.
Special Analysis by Omanet | Navigate Oman’s Market
The arrival of critical hardware for Jindal Steel Duqm’s low-carbon steel project signals Oman’s strategic pivot towards green industrialization, leveraging its natural gas and renewable energy for sustainable manufacturing. This $3 billion venture presents a significant opportunity for local businesses to integrate into a burgeoning green supply chain, while also attracting global investors focused on ESG-compliant projects. Smart investors and entrepreneurs should now consider aligning with the energy transition and circular economy technologies enabled by this landmark steel complex set to launch in 2027.
