OQGN Explores Carbon Capture Opportunities in Ibri: Implications for Investment and Sustainability in Oman
MUSCAT, AUGUST 11 – In a significant move to advance its carbon capture and storage initiatives, OQ Gas Networks (OQGN), the majority state-owned operator of Oman’s gas transportation infrastructure, has selected the Ibri Power Project in the Al Dhahirah Governorate as a key site for carbon capture in collaboration with Occidental (Oxy) Oman.
The project aligns with OQGN’s strategic commitment to carbon capture, utilization, and storage (CCUS), alongside the transport of green hydrogen. These initiatives are central to the company’s mission to contribute to Oman’s Net Zero goals.
In its Q2 2025 financial performance report, OQGN emphasized its ongoing focus on the energy transition, particularly in the realms of hydrogen and CCUS. The company announced a cooperation agreement with Belgian energy infrastructure firm Fluxys to jointly develop hydrogen transportation infrastructure in Oman. It further highlighted the Ibri Power Plant as a priority for carbon capture, indicating ongoing collaboration with Oxy to explore capture opportunities.
The Ibri Power Plant is a 1,509 MW combined-cycle gas turbine facility that ranks among Oman’s largest gas-fired power projects. It commenced operations in Q2 2019 and was developed by Ad-Dhahirah Generating Company, with backing from a consortium that includes ACWA Power, Mitsui, and DIDIC.
Oxy Oman is one of several local and international partners working with OQGN to support Oman’s energy transition and decarbonization efforts. In November 2023, Oxy signed a memorandum of understanding (MoU) with OQGN to jointly research and develop CCUS projects in Oman, focusing on enhanced oil recovery (EOR) and comprehensive carbon management strategies.
Fluxys, a leader in energy infrastructure, is both a strategic partner and investor, owning a 4.9% equity stake in OQGN. In October 2023, the two entities signed an MoU to collaborate on the development of hydrogen and CO₂ infrastructure in Oman. This partnership progressed in May 2025 with the signing of a term sheet agreement, allowing Fluxys to act as a minority shareholder and co-operator for Oman’s hydrogen transportation network.
Additionally, OQGN has entered into a Memorandum of Cooperation with Oman’s Ministry of Energy and Minerals and other key energy stakeholders to establish a “House of Expertise.” This initiative aims to develop the regulatory and strategic framework for CCUS technologies and blue hydrogen, in support of Oman’s Net Zero 2050 objectives.
Furthermore, in collaboration with Hydrom, a key architect of Oman’s green hydrogen sector, OQGN is conducting technical feasibility studies on open-access pipeline networks for transporting both green hydrogen and CO₂, utilizing its existing natural gas infrastructure to facilitate decarbonization efforts.
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The focus on carbon capture and hydrogen infrastructure by OQ Gas Networks (OQGN) signals a transformative opportunity for businesses in Oman to engage in the burgeoning green energy sector. However, this shift also presents risks for traditional fossil fuel enterprises that may lag in adapting to these sustainability-driven initiatives. Smart investors and entrepreneurs should now consider positioning themselves within the renewable energy space and exploring partnerships in innovative projects to capitalize on Oman’s ambitious Net Zero goals.
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