OMIFCO, IGC to finalise gas deal for expansion

MUSCAT: Oman India Fertiliser Company (OMIFCO) is engaged in intensive discussions with Integrated Gas Company (IGC), the state-run exclusive aggregator and supplier of natural gas, over its application for additional natural gas feedstock, a key prerequisite for a long-proposed expansion of its ammonia and urea production capacity.
OMIFCO’s senior management said the talks were progressing positively, although a final investment decision on the expansion had yet to be taken.
The update came during the company’s earnings call covering its first-half 2026 performance. Participants included Dr Ahmed Al Marhoubi, Chief Executive Officer; Abdullah Al Hashami, Chief Financial Officer; Zaki Al Maawali, General Manager – Technical Services; and Khalid Sulaiman al Farsi, General Manager – Corporate Support.
Management said OMIFCO had submitted a formal gas-allocation request to IGC and was seeing “positive signs” regarding the availability of the volumes required for the proposed expansion.
Once the allocation is secured, the project will move through detailed technical and commercial evaluations before being presented to OMIFCO’s board for approval. The financing structure, including the mix of equity and other funding sources, will be determined as part of the final investment decision.
Officials said the publicly traded company has also completed the revalidation of a 2018 feasibility study for a potential third production train, underlining its readiness to advance the project once feedstock availability is confirmed.
The expansion forms the medium-term component of a three-horizon growth strategy. In the short term, OMIFCO is concentrating on operational efficiency, equipment and process upgrades, renewable-energy deployment, and initiatives designed to reduce energy consumption and emissions.
Completed and ongoing improvements include the replacement of the Urea-2 reactor and Ammonia-2 reformer tubes, as well as upgrades involving compressor systems and the hydrogen recovery unit. The company has also completed four phases of solar-panel installations, providing around 1 megawatt-peak of clean electricity, and converted process-plant lighting to energy-efficient LED systems.
Over the longer term, OMIFCO plans to pursue innovation and product diversification through a clean-energy and decarbonisation programme aligned with Oman’s national targets. Opportunities being explored include hydrogen, carbon capture and the diversification of ammonia-based products.
Operationally, OMIFCO produced one million tonnes of urea during the first half of 2026, up 6.2 per cent year on year, at an average utilisation rate of 119 per cent. Urea sales rose 6.9 per cent to 989,000 tonnes, while revenue surged 46.9 per cent to more than RO 178 million, supported by an average realised price of $477 per tonne.
Ammonia production increased 1.3 per cent to 659,000 tonnes at an average utilisation rate of 107 per cent. Most output was retained as feedstock for urea production, reducing external ammonia sales to 53,000 tonnes from 93,000 tonnes a year earlier. Nevertheless, ammonia revenue climbed 21.4 per cent to RO12.7 million as the average realised price rose to $622 per tonne.
OMIFCO’s existing gas-supply agreement with IGC runs until July 2035. Management said it intends to begin extension discussions well before expiry, recognising natural gas as critical to the company’s long-term operations.
A joint venture between Oman and India, OMIFCO operates an integrated complex in Sur with annual nameplate capacities of 1.65 million tonnes of urea and 1.15 million tonnes of ammonia.