IGC’s $3.4 Billion Gas Agreements: Key Opportunities for Investors and Businesses in Oman
Integrated Gas Company Signs Strategic Agreements to Boost Oman’s Gas Sector
The Integrated Gas Company (IGC), the primary aggregator and supplier of natural gas in Oman, has signed a series of strategic gas agreements with both local and international firms. The signing ceremony took place on November 2, 2025, under the auspices of Sultan bin Salim Al Habsi, the Minister of Finance, at the Mandarin Oriental Hotel. This significant event gathered key stakeholders from various industries to enhance the integration of the gas value chain and promote sustainable management of natural gas resources in Oman.
During the ceremony, IGC unveiled 14 gas sales agreements with a combined value exceeding RO 3.4 billion, set to span a ten-year investment horizon. The agreements include three gas purchase contracts with major producers, Occidental of Oman Inc (OXY) and Energy Development Oman (EDO). Additionally, two memoranda of understanding were established with projects within the OQ Group, notably the Duqm Petrochemical Complex and OQ Alternative Energy, aiming to foster joint cooperation.
The partnerships feature stakeholders from India, China, the United States, France, Kuwait, and the United Arab Emirates, alongside active participation from Omani companies involved in sectors such as energy, petrochemicals, cement, mining, healthcare, and manufacturing.
Dr. Musallam Mahad Qatan, Chairman of IGC’s Board and Director General of the Directorate General of Revenues at the Ministry of Finance, highlighted that IGC is executing the government’s gas allocation policy and managing contracts between producers and private investors, while also coordinating with relevant governmental bodies. He pointed out that the agreements, which cover significant industrial and free zones including Duqm, Suhar, Salalah, Nizwa, and Sur, are aimed at enhancing local industrial value and competitiveness across Oman’s various governorates. This initiative exemplifies the collaborative effort between the government and the private sector to create a partnership-based economy, optimizing the use of national resources.
Abdulrahman bin Humaid Al-Yahyaei, Chief Executive Officer of IGC, remarked that the ceremony signifies a pivotal moment for both the company and Oman’s gas sector. He expressed confidence that these agreements would bolster investor trust in Oman’s integrated gas system—encompassing both upstream and downstream—and stimulate increased global investment in gas exploration and production.
Al-Yahyaei indicated that the average gas volume allocated to end consumers is expected to surpass 27.9 million cubic meters per day once all projects are fully operational. He underscored that these agreements illustrate Oman’s commitment to energy security, sustainable industrial growth, and economic diversification in alignment with Oman Vision 2040.
Lastly, he emphasized that these initiatives promote environmental sustainability by utilizing gas to power industries and transitioning gradually towards alternative energy sources and hydrogen, while also ensuring associated gas is used industrially instead of being flared during oil production.
Special Analysis by Omanet | Navigate Oman’s Market
The recent signing of 14 strategic gas agreements by the Integrated Gas Company signifies a pivotal move for businesses in Oman, enhancing investor confidence and encouraging global partnerships in the gas sector. This opens up significant opportunities for local industries to thrive, particularly in energy and manufacturing, while also representing a risk of over-reliance on gas during a transition to alternative energy sources. Savvy investors and entrepreneurs should focus on sustainable practices and diversification strategies to align with Oman Vision 2040 and capitalize on the changing energy landscape.
