Gas deals lift Oman’s net gas revenues in 2026

MUSCAT, JAN 4

Net gas revenues are projected to rise by 10.4 per cent to RO 1.961 billion in fiscal 2026, up from an estimated RO 1.777 billion in 2025, marking a notable increase driven largely by a series of landmark gas agreements signed by the Integrated Gas Company (IGC). As Oman’s sole aggregator and supplier of natural gas, IGC recently concluded multiple long-term deals with domestic gas producers and industrial end-users, strengthening revenue visibility and supply security.

According to the Ministry of Finance, net gas revenues of just under RO 2 billion in 2026 will account for 17 per cent of total public revenue for the year. The ministry attributed the higher revenue outlook to the signing of 17 new Gas Sale and Purchase Agreements by IGC, alongside the annual 3 per cent increase in gas sale prices built into the pricing framework.

In November 2025, the wholly state-owned IGC signed 19 strategic gas agreements and memoranda of understanding, aimed at optimising Oman’s gas value chain and ensuring the sustainable management of the Sultanate of Oman’s natural gas resources. These included 14 gas sales agreements valued at more than RO 3.4 billion, expected to unlock over RO 2 billion in new capital investments across downstream and industrial projects.

In parallel, IGC secured strategic gas purchase agreements with key upstream producers, including Occidental Oman (covering concession areas 62 and 65) and Energy Development Oman (concession area 6). Additional MoUs were signed with OQ Group affiliates, covering gas supply to the Duqm Petrochemical Complex and initiatives linked to OQ Alternative Energy, reinforcing the alignment between gas allocation and Oman’s broader industrial and energy transition ambitions.

According to IGC CEO Abdulrahman al Yahyaei, the agreements span allocations to the fertiliser, petrochemical, pharmaceutical, food processing and mining sectors, effectively doubling the volume of gas dedicated to industrial development in the country.

“Our mandate is to maximise government revenue, support economic diversification, introduce efficiency and decarbonisation measures across the gas value chain and generate in-country value”, Al Yahyaei said in a recent interview with The Energy Year.

He noted that since 2024, IGC has rolled out several reforms, most notably a new gas allocation framework aligned with national criteria set by Invest Oman. These criteria include GDP contribution, Omanisation, job creation, in-country value, decarbonisation and market development.

The framework, Al Yahyaei explained, is designed to reinforce IGC’s broader mission of supporting sustainable growth and economic diversification in line with Oman Vision 2040. While gas supply to existing industries will continue to be prioritised to ensure production continuity, new projects will be assessed based on gas efficiency, emissions intensity and alignment with energy transition objectives.

“The goal is to attract industries that consume less gas, maintain lower emissions, and are capable of transitioning over time to alternative energy sources such as green hydrogen and other cleaner fuels”, he said.