Oman’s Vision for Three Carbon Capture Ecosystems: Key Insights for Investors and Business Owners
MUSCAT, DEC 6
OQ Gas Networks (OQGN), the exclusive owner and operator of Oman’s natural gas transmission system, has announced plans for a nationwide CO₂ pipeline network aimed at supporting industrial decarbonization as part of the country’s journey towards Net-Zero emissions.
The initiative outlines the establishment of three independent Carbon Capture, Utilisation and Storage (CCUS) ecosystems located in major industrial hubs across northern, central, and southern Oman. More than 800 kilometers of dedicated pipelines will be constructed to transport captured CO₂ from sources of emissions to designated storage or utilization sites.
Details of this comprehensive carbon-management strategy were presented in an Information Memorandum released by OQGN on Thursday, December 4, 2025, inviting both local and international companies to express interest in participating in this significant infrastructure project.
"As part of OQGN’s commitment to alternative energy and the pursuit of solutions for clean energy transport, we are excited to announce the launch of our Expression of Interest (EOI) for organizations interested in contributing to a future carbon-dioxide network," stated the majority state-owned operator.
Through this initiative, OQGN aims to enhance Oman’s CO₂ infrastructure by linking emission sources with appropriate storage locations, thereby supporting the nation’s aim to achieve net-zero emissions.
CCUS technology plays a crucial role in mitigating climate change, particularly in industries that are difficult to decarbonize, such as steel, cement, and power generation. This process involves capturing CO₂ emitted from industrial operations or directly from the atmosphere and transporting it for either permanent geological storage or productive use, thus reducing overall emissions.
Informed by a CCUS strategy study and market forecast assessment, OQGN delineated plans for three separate CCUS ecosystems.
The Northern CCUS Ecosystem is designed to decarbonize the expanding Sohar Industrial Area, which currently represents Oman’s largest emissions cluster, as well as surrounding regions like Ibri. This plan entails securing consistent CO₂ supplies and constructing an estimated 300-kilometer pipeline to connect emission sources with storage or utilization sites.
Once established, the Northern ecosystem is expected to facilitate growth in the Sohar Industrial Area while reducing emissions, attracting investments in low-carbon industries, and enabling companies to attain low-carbon premiums for their products.
The Central CCUS Ecosystem will focus on assisting both existing and emerging emitters in Duqm, with potential storage sites located in Oman’s largest oil concession, Block 6, supported by an estimated 200-kilometer pipeline.
The Southern CCUS Ecosystem is planned for the Salalah Industrial Area, where captured CO₂ will be directed to storage sites within Block 6 through a proposed 300-kilometer pipeline network.
For the Sur industrial hub, OQGN has identified that it may be more cost-effective to transport captured CO₂ to nearby local storage options. Consequently, the operator is collaborating with emitters in Sur to pinpoint suitable storage or utilization sites in closer proximity to these emission sources.
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The launch of OQ Gas Networks’ nationwide CO₂ pipeline network presents significant opportunities for businesses in Oman, particularly in industrial sectors such as steel and cement, which can leverage the CCUS technology to reduce emissions and meet regulatory demands. Smart investors should consider the potential for low-carbon industry investments and the economic benefits of participating in a rapidly evolving landscape aimed at sustainability and net-zero targets. However, companies must also assess the risks associated with the capital-intensive nature of infrastructure development and the need for reliable CO₂ sourcing strategies.
