Oman’s 2026 Gas Deals: Boosting Net Revenues and Business Opportunities for Investors
MUSCAT, JANUARY 4 — Net gas revenues in Oman are forecast to increase by 10.4 percent to RO 1.961 billion in fiscal year 2026, up from an estimated RO 1.777 billion in 2025. This growth is primarily driven by a series of significant gas agreements recently signed by the Integrated Gas Company (IGC), Oman’s exclusive aggregator and supplier of natural gas. These long-term agreements with domestic gas producers and industrial consumers have enhanced both revenue stability and supply security.
The Ministry of Finance reports that net gas revenues approaching RO 2 billion in 2026 will represent 17 percent of the total public revenue for the year. This improved outlook stems from the signing of 17 new Gas Sale and Purchase Agreements by IGC, coupled with an annual 3 percent increase in gas sale prices embedded in the pricing framework.
In November 2025, the fully state-owned IGC finalized 19 strategic gas agreements and memoranda of understanding aimed at optimizing Oman’s gas value chain and ensuring the sustainable management of the Sultanate’s natural gas resources. These included 14 gas sales agreements valued at over RO 3.4 billion, which are expected to trigger more than RO 2 billion in new capital investments across downstream and industrial projects.
Concurrently, IGC secured key gas purchase agreements with major upstream producers such as Occidental Oman (covering concession areas 62 and 65) and Energy Development Oman (concession area 6). Additional MoUs were signed with OQ Group affiliates to cover gas supply to the Duqm Petrochemical Complex and support initiatives related to OQ Alternative Energy. These moves reinforce the strategic alignment between gas allocation and Oman’s broader industrial and energy transition goals.
IGC CEO Abdulrahman al Yahyaei highlighted that the agreements encompass gas allocations for the fertilizer, petrochemical, pharmaceutical, food processing, and mining sectors, effectively doubling the volume of gas dedicated to industrial development in Oman.
“Our mandate is to maximize government revenue, support economic diversification, implement efficiency and decarbonization measures across the gas value chain, and generate in-country value,” al Yahyaei stated in a recent interview with The Energy Year.
Since 2024, IGC has introduced several reforms, most notably a new gas allocation framework aligned with national criteria set by Invest Oman. These criteria emphasize GDP contribution, Omanisation, job creation, in-country value, decarbonization, and market development.
Al Yahyaei explained that this framework supports IGC’s mission of promoting sustainable growth and economic diversification in line with Oman Vision 2040. While prioritizing gas supply to existing industries to ensure uninterrupted production, new projects will be evaluated based on gas efficiency, emissions intensity, and compliance with energy transition objectives.
“The goal is to attract industries that use less gas, produce lower emissions, and can gradually transition to alternative energy sources like green hydrogen and other cleaner fuels,” he added.
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Oman’s projected 10.4% increase in net gas revenues, driven by strategic long-term agreements, signals a robust opportunity for industrial expansion and economic diversification under Oman Vision 2040. Smart investors should focus on sectors aligned with gas efficiency, low emissions, and energy transition, as IGC’s new gas allocation framework emphasizes sustainable growth and decarbonization, mitigating risks tied to conventional energy dependencies. This shift positions Oman as a key player in the regional energy transition, attracting capital in downstream and clean energy projects.
