Oman’s Gas Output Hits 4.455 bcm: Implications for Investment Opportunities in the Energy Sector
MUSCAT: Natural gas production in Oman, including both domestic output and imports, experienced a decline of 3.2% by the end of January 2026, totaling 4.455 billion cubic meters, down from 4.603 billion cubic meters during the same period in 2025. This information is based on data released by the National Centre for Statistics and Information.
Production of associated gas saw a significant drop of 17.4%, falling to 899.5 million cubic meters from 1.089 billion cubic meters recorded in the previous year. Conversely, non-associated gas production, which includes imports, rose by 1.2%, reaching 3.556 billion cubic meters, compared to 3.514 billion cubic meters in January 2025.
On the consumption front, demand for natural gas in industrial projects increased by 5.9%, amounting to 2.566 billion cubic meters, up from 2.423 billion cubic meters a year earlier.
Gas consumption in power generation plants saw an even larger rise of 14.1%, reaching 1.157 billion cubic meters, compared to 1.014 billion cubic meters in January 2025.
However, gas consumption in oil fields—including losses, meter discrepancies, and shrinkage factors—declined sharply by 38.1%, dropping to 707.3 million cubic meters from 1.143 billion cubic meters recorded in the previous year.
Additionally, gas usage in industrial areas, which encompasses industrial zones as well as Minerals Development Oman and Oman Cement, experienced modest growth of 3.7%, reaching 24.1 million cubic meters compared to 23.2 million cubic meters during the same period in 2025. — ONA
Special Analysis by Omanet | Navigate Oman’s Market
Oman’s decline in natural gas production presents both challenges and opportunities for businesses. While demand in industrial sectors is rising, driven by a 5.9% increase in consumption, the decreasing associated gas output signals potential risks in supply stability. For smart investors and entrepreneurs, there is a need to explore renewable energy alternatives and technologies that enhance efficiency in gas consumption to navigate this shifting landscape effectively.
