MUSCAT: OQ Gas Networks SAOG (OQGN) has awarded a key contract for the construction of a second gas pipeline loop between Fahud and Suhar, reinforcing Oman’s energy infrastructure and supply capacity. The 42-inch, 193-kilometre pipeline will be developed under a contract signed with The Petroleum Projects Company Petrojet and Partners LLC. The Engineering, Procurement and Construction (EPC) agreement was signed on June 17, 2025. In parallel, the company awarded the contract for supplying the line pipe to Jindal Saw Limited.
The total project, valued at approximately RO 105 million, is scheduled for completion within 24 months. OQ confirmed that the cost will be integrated into its Regulated Asset Base (RAB), ensuring that the return on investment will be calculated under the approved Weighted Average Cost of Capital (WACC). Under Price Control 3, the applicable WACC is set at 7.79 per cent and will remain in effect until 2027.
This new pipeline forms a critical part of OQ’s strategy to expand its transmission network and improve the resilience of natural gas supply to key regions in northern Oman. It will help accommodate increasing industrial demand and improve energy access in major zones such as Suhar. The project also supports national economic diversification by enabling more efficient and reliable delivery of energy to existing and emerging industries. — ONA
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