Three gas pipeline projects set for end-2027

MUSCAT, AUGUST 30
MUSCAT: Three major gas pipeline projects designed to strengthen supply capacity to key industrial and economic growth hubs across Oman are set for completion by the end of 2027, according to senior executives of OQ Gas Networks (OQGN), the Sultanate of Oman’s exclusive operator of the natural gas transmission network.
Details of the projects were shared during an investor conference call hosted by OQGN to discuss its financial and operational performance for the first half of 2026. Representing the company were Eng. Mansoor Ali Al Abdali, Chief Executive Officer; Eng. Saif Al Hosni, Chief Business Development & Commercial Officer; and Sultan Al Balushi, Acting Chief Financial Officer.
Currently under development is the 193-km, 42-inch Fahud–Sohar Loop Line, a major capacity-expansion project designed to debottleneck the northern gas network and accommodate growing industrial demand in Suhar and Ibri. Running from the Fahud Compressor Station towards Suhar, parallel to the existing Fahud–Suhar pipelines, the new line will add around 11 million standard cubic metres per day (MMSCMD) of transmission capacity to the northern network.
Also making headway is the 31-km, 14-inch Budoor–Tayseer pipeline, a gas-supply integration project designed to connect the Budoor Tayseer Gas Plant with OQGN’s national transmission network. The project is expected to add approximately 2 MMSCMD of transmission capacity.
In the southeast, OQGN is advancing the 13-km, 32-inch Duqm Growth pipeline, which is designed to augment gas supplies to the Port of Duqm area and support the expanding cluster of industries requiring natural gas.
Slated for completion by the end of 2027, the three projects form part of an OMR 294 million capital expenditure programme earmarked for infrastructure growth during the current Price Control period, officials said.
When operational, the projects will contribute to expanding OQGN’s overall pipeline network to 4,717 km by 2027, up from 4,368 km at the end of 2025. Total network capacity is projected to rise to 80.3 billion standard cubic metres (bn scm), from 76.3 bn scm in 2025, while gas transportation volumes are forecast to reach 47.1 bn scm, compared with 42.4 bn scm in 2025.
In another key operational highlight, OQGN’s national pipeline system transported more than 22 billion cubic metres of gas during the first half of 2026, representing a 9 per cent increase from the corresponding period of 2025.
Later in a Q&A with investors, OQGN executives acknowledged a broader slowdown in the development of the green hydrogen economy, both globally and in Oman, citing market conditions, geopolitical factors and continued reliance on established energy sources.
Oman’s hydrogen development plans nevertheless remain in place, they stressed, although individual projects are being recalibrated around more realistic implementation timelines and production volumes. This has resulted in some downsizing of planned projects rather than their outright cancellation.
OQGN, meanwhile, continues to prepare for the eventual scale-up of the hydrogen sector. As the designated transporter, the company has plans and conceptual designs for hydrogen transportation infrastructure in place and says it remains ready to support the industry as market conditions improve and projects move towards implementation.