Gas Bridges Al Duqm’s Green Hydrogen Shift: What It Means for Investors and Entrepreneurs in Oman
MUSCAT: Natural gas will continue to play a crucial role as a bridge fuel for industries in the Special Economic Zone at Al Duqm (SEZAD), while the shift towards green hydrogen as a primary energy source is progressing steadily, said Shaikh Dr Ali bin Masoud al Sunaidy, Chairman of the Public Authority for Special Economic Zones and Free Zones (OPAZ).
Last week, the Integrated Gas Company (IGC), Oman’s exclusive natural gas aggregator and supplier, finalized contracts allocating 18.614 million standard cubic metres per day (MMscmd) of gas for industrial customers in Al Duqm. This allocation significantly surpasses the gas commitments to Suhar (4.747 MMscmd), Sur (4.330 MMscmd), and Salalah (0.525 MMscmd), highlighting Al Duqm’s rising status as Oman’s premier industrial hub.
In an exclusive interview with the Observer, Dr Al Sunaidy emphasized the vital role of natural gas as a transitional fuel until green hydrogen adoption scales up in Al Duqm. “Al Duqm has the capacity to receive 25 million cubic metres of gas daily, with a portion already designated for companies transitioning to green energy. For instance, the green steel project will initially utilize natural gas before switching to green hydrogen or its derivatives,” he explained.
He further noted that the refinery is actively reducing its natural gas dependency by shifting towards cleaner energy, especially green hydrogen. The plan includes powering furnaces with green hydrogen, along with warehouse operations and mobility systems increasingly relying on renewable electricity generated from solar and wind sources.
Dr Al Sunaidy added, “We are allowing a transition period for industries until green energy becomes more cost-competitive—which it already is. For example, India’s Acme Group is developing a green hydrogen project with a contractual agreement to export green ammonia to Europe by 2027. Likewise, the green steel project under construction is designed to transition fully to green energy. We require all new projects in Al Duqm to incorporate green energy transition plans from the design phase.”
The Duqm SEZ is set to be Oman’s first major industrial hub to use locally produced green hydrogen as a low-carbon energy source. This hydrogen will support the zone’s wider decarbonization efforts, powering industrial furnaces, steel manufacturing, and warehousing activities.
In essence, SEZAD is integrating green hydrogen both as a feedstock and an energy source, aligning with Oman Vision 2040 and the country’s Net Zero 2050 objectives.
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Oman’s Al Duqm SEZ is positioning itself as a pioneer in the energy transition, leveraging natural gas as a bridge fuel while aggressively advancing towards green hydrogen adoption. For businesses, this signals an urgent need to integrate sustainable energy strategies from the design phase, creating opportunities in green tech and decarbonization sectors. Smart investors should consider early engagement with the emerging green hydrogen ecosystem as it promises long-term competitive advantages aligned with Oman Vision 2040 and Net Zero 2050 goals.
