Muscat- The Ministry of Finance recently announced the establishment of the Integrated Gas Company (IGC) after it was mentioned during the pre-budget meeting.
The decision approved the articles of association and financial regulations, which will include managing all allocations, assets, rights, and obligations for the purchase, sale, import, export, and transportation of natural gas and related products on behalf of the Government of the Sultanate of Oman.
The main goal of the new company is to improve fiscal performance by removing the expenses of purchasing and transporting gas from the State's general budget and transferring the gas revenue to the treasury.
Before establishing the new company, the total gas revenue was RO2,750 million, while the cost to purchase and transport gas was RO1,600 million.
With the establishment of the IGC, the 2023 budget estimates the revenue from gas to go up to RO1,400 million from RO1,150 million.
This can be achieved by enchanting the efficiency of the gas sector, ensuring the adherence of producers and consumers to the contracts/agreements signed in the gas sector, implementing government policies and plans in regard to gas prices and quantity allocated to each sector, as well as selling of gas to gas-based industries, and increasing economic activity and in-country value of the gas sector and relevant activities.
The Integrated Gas Company will operate on the lines of Energy Development Oman, which was established in 2020.
"IGC will be is a state-owned enterprise, entrusted with the management of all allocations, assets, rights, and obligations of purchasing, selling, importing and exporting, and transporting of natural gas and relevant products on behalf of the Government of Oman," the statement said.
The establishment of IGC comes according to the provisions of the Commercial Companies Law promulgated by Royal Decree No. (18/2019), Privatization Law promulgated by Royal Decree (51/2019), Royal Decree No. (80/1998) promulgating the Capital Markets Law and its amendments, and the provisions of the Memorandum of Association and the Company’s Articles of Association.