OQGN to Connect Misfah and Duqm IPPs to Oman’s Gas Grid: Key Boost for Energy Investors and Industrial Growth in Oman
MUSCAT, NOV 17 — OQ Gas Networks (OQGN), the exclusive operator of Oman’s natural gas transmission system, is preparing to connect two significant gas-fired Independent Power Projects (IPPs), currently under procurement, to the national gas grid.
Nama Power and Water Procurement Company (PWP), the sole purchaser of power and water output in Oman, is managing the procurement of two combined-cycle gas turbine (CCGT) IPPs. These projects are set to be developed in Al Misfah, Muscat Governorate, and Al Duqm, Al Wusta Governorate. The Al Misfah IPP is the larger project, with a planned capacity of 1,600 MW, while the Al Duqm IPP will have an 800 MW capacity.
Three consortiums led by international developers are competing to secure contracts to build these IPPs. Both projects aim to commence commercial operations by April 1, 2029, with an initial power supply planned as early as April 1, 2028.
Officials from OQGN, a publicly traded subsidiary of the OQ Group, confirmed that the Final Investment Decision (FID) has been approved to link the two power plants to the national gas grid. The company has also begun the basic engineering work necessary to support these gas supply connections, details shared during the release of OQGN’s Q3 performance report.
According to the regulator-approved FID, the Al Misfah IPP will be supplied with 8.5 million standard cubic meters per day (MMSCMD) of natural gas, while the Al Duqm IPP will receive 4.5 MMSCMD.
Meanwhile, construction on the Fahud–Suhar Loop Line project—a 193-kilometer gas pipeline designed to enhance Oman’s gas supply network—is progressing. Petroleum Projects Company Petrojet and Partners LLC won the engineering, procurement, and construction (EPC) contract valued at RO 105 million, awarded in June. The pipeline’s 42-inch pipes are being sourced from Jindal Saw Limited, India.
Mansoor Ali Al Abdali, CEO of OQGN, highlighted that the company currently sources natural gas from six producers to meet the demands of over 130 end-users across Oman.
“Our extensive high-pressure pipeline network spans nearly 4,300 kilometers, stretching from Al Buraimi in the north to Salalah in the south, with a total capacity exceeding 70 billion cubic meters of gas,” he explained.
He added, “All international oil companies operating in Oman are connected to our network, including Petroleum Development Oman (PDO), which supplies over 60% of the gas. BP, Oxy, and Shell also supply gas through pipelines linked to PDO, and our parent company OQ, through its upstream division OQEP, is connected as well. Last year, we supplied over 40 billion cubic meters of natural gas, and within the first three quarters of this year, we have already delivered nearly 36 billion cubic meters to various industries.”
Special Analysis by Omanet | Navigate Oman’s Market
The connection of two major gas-fired IPPs to Oman’s national gas grid signals a strategic expansion in the country’s power infrastructure, enhancing energy security and capacity. For businesses, this means increased demand for natural gas and related services, presenting opportunities in energy supply, construction, and technology sectors. Smart investors and entrepreneurs should focus on leveraging emerging contracts in the energy supply chain and positioning themselves to support the growing infrastructure and industrial gas consumption.
