IGC Signs 19 Gas Agreements Worth RO 3.4 Billion: Implications for Investment Opportunities in Oman’s Energy Sector
Integrated Gas Company Signs Strategic Agreements to Boost Gas Sector in Oman
On November 2, 2025, the Integrated Gas Company (IGC), the exclusive aggregator and supplier of natural gas in Oman, signed several pivotal gas agreements during a ceremony held at the Mandarin Oriental Hotel. The event took place under the patronage of Sultan bin Salim Al Habsi, Minister of Finance, and brought together key industry stakeholders to enhance the gas value chain and ensure the sustainable management of natural gas resources in the Sultanate.
The ceremony witnessed the signing of 14 gas sales agreements with both local and international companies, valued at over RO 3.4 billion and extending over a ten-year investment period. Additionally, three gas purchase agreements were established with prominent producers, Occidental of Oman Inc. (OXY) and Energy Development Oman (EDO). Two memoranda of understanding were also signed with projects under the OQ Group, including the Duqm Petrochemical Complex and OQ Alternative Energy, aimed at fostering collaboration.
The agreements involved partnerships with investors from India, China, the United States, France, Kuwait, and the United Arab Emirates, alongside active participation from Omani firms in sectors such as energy, petrochemicals, cement, mining, healthcare, and manufacturing.
Dr. Musallam Mahad Qatan, Chairman of the Board for IGC and Director General of the Directorate General of Revenues at the Ministry of Finance, stated that IGC is implementing the government’s gas allocation policy and contract management strategy between producers and private sector investors while enhancing cooperation with relevant government bodies. He stressed that these agreements, which encompass major industrial and free zones like Duqm, Suhar, Salalah, Nizwa, and Sur, are designed to bolster local industrial value and competitiveness across Oman’s governorates. This reflects a shared commitment from both the government and the private sector to develop a partnership-based economy that optimizes national and human resources.
Abdulrahman bin Humaid Al-Yahyaei, Chief Executive Officer of IGC, described the event as a transformative moment for the company and Oman’s gas sector. He noted that the agreements will enhance investor confidence in Oman’s integrated gas system—covering both upstream and downstream operations—thereby encouraging increased global investment in gas exploration and production.
Al-Yahyaei further mentioned that, once all projects are operational, the average gas volume allocated to end consumers is expected to exceed 27.9 million cubic meters per day. He underscored that these agreements not only demonstrate Oman’s commitment to energy security and sustainable industrial growth but also align with the objectives of Oman Vision 2040 for economic diversification.
Moreover, he emphasized the initiatives’ role in promoting environmental sustainability by powering industries with gas, gradually transitioning towards alternative energy and hydrogen solutions, and utilizing associated gas for industrial processes rather than flaring it during oil production.
Special Analysis by Omanet | Navigate Oman’s Market
The recent gas agreements signed by the Integrated Gas Company signify a pivotal moment for Oman’s energy sector, enhancing investor confidence and fostering sustainable industrial growth. This creates opportunities for local and international businesses to engage in emerging sectors like petrochemicals and alternative energy, while also presenting risks related to market volatility and environmental regulations. Smart investors and entrepreneurs should consider aligning with these strategic initiatives to capitalize on Oman’s commitment to economic diversification and sustainable resource management.
