• Saih Nihayda NGL Extraction Project supports the development of Duqm as a regional petrochemicals’ hub.
• Gas sales agreement from Block 65 enhances efficiency, lowers emissions and drives value for OQEP’s shareholders and investors.
• Renewal of the gas supply contract with OMIFCO secures uninterrupted production of ammonia and urea.
• Gas supply agreement with Marsa LNG enables Sohar Port’s development as Oman’s first LNG bunkering hub./strong>
• Memorandum of Cooperation promotes gas efficiency and the transition toward cleaner energy in support of OQ’s net-zero pathway.
• Agreement with Marafiq ensures stable energy and water supply to the Special Economic Zone at Duqm (SEZAD).

OQ, the global energy investment group, has taken a new step in reinforcing its role in Oman’s gas sector transformation, signing five agreements and one memorandum of cooperation with the Integrated Gas Company (IGC). The agreements aim to strengthen the resilience and integration of Oman’s gas value chain, from upstream exploration to downstream industries, ensuring reliable supply for industrial growth across Oman.

The milestone aligns with OQ’s long-term strategy to position gas as a key enabler of industrial development and economic diversification. Through sustainable investments that unlock greater value from Oman’s natural resources, OQ continues to advance the readiness of existing and future projects in Duqm, Sohar and Sur, while further establishing Oman as a regional centre for petrochemicals and clean energy.

As part of Duqm’s industrial expansion, the first agreement is a gas supply term sheet that secures the supply of 48 million cubic meters of natural gas per day for 20 years to the Saih Nihayda NGL Extraction Project. The project’s first phase will include facilities for gas separation, storage and export in the Special Economic Zone at Duqm (SEZAD). The Term Sheet, as a second phase, provides for the allocation of gas resources to the planned Duqm Petrochemicals Complex, with a potential ethane production capacity of one million tonnes per year, creating an integrated industrial ecosystem that enhances in-country value.

This agreement was signed by Ashraf Hamed Al Mamari, Group Chief Executive Officer of OQ and Abdul Rahman Humaid Al Yahyaei, Chief Executive Officer of IGC.

The second agreement enables OQEP to sell its share of natural gas from Block 65 to IGC, enhancing flexibility and sustainability within Oman’s domestic gas supply network and ensuring the steady flow of gas to industrial clients. This agreement was signed by Eng. Mahmoud Abdullah Al Hashmi, Acting Chief Executive Officer of OQEP.

In the liquefied natural gas (LNG) segment, the third agreement enables Marsa LNG to receive and transport up to 150 million standard cubic feet per day of natural gas from its entitled share in the Mabrouk field (Block 10), where Marsa LNG holds a 33.19% interest. A joint venture between TotalEnergies (80%) and OQ Exploration & Production (20%), Marsa LNG represents a strategic milestone in Oman’s downstream evolution, developing the nation’s first LNG bunkering project and reinforcing Sohar Port’s role as a regional centre for clean energy.

The gas, supplied through the OQ Gas Networks (OQGN) system, will provide the essential feedstock for the Marsa LNG’s new facilities under development at Sohar Port. The agreement was signed by Fares El Khazen, Chief Executive Officer of Marsa LNG.

In the downstream sector, the fourth agreement was signed between Oman India Fertiliser Company (OMIFCO) and IGC to renew an existing natural gas supply contract for ten years and to define the commercial and operational framework for the sale and purchase of 4.3 million cubic meters of gas per day (equivalent to 161,000 MMBtu/day). This agreement will ensure the continued production of ammonia and urea through secured feedstock and was signed by Dr. Ahmed Said Al Marhoubi, CEO of OMIFCO.

To ensure infrastructure sustainability in Duqm, IGC signed a fifth agreement with Marafiq to supply natural gas to the Duqm power and water desalination plant, guaranteeing consistent energy and water services critical to SEZAD’s continued growth. This agreement was signed by Talal Al Lawati, VP Commercial and Investments at Marafiq.

To advance the clean energy transition, OQAE signed a Memorandum of cooperation with IGC to advance gas efficiency through electrification of high-energy systems, greater use of renewables across industrial facilities, adoption of ISO 50001 energy management standards, and pilot initiatives to optimise energy performance. The memorandum was signed by Ghalib Said Al Maamari, Acting CEO of OQAE.

Ashraf Hamed Al Mamari, Group Chief Executive Officer of OQ, said: ““The signing of five agreements and a memorandum of cooperation by OQ and its subsidiaries underscores the Group’s continued efforts to maximise the value of Oman’s natural resources and advance its investment strategy. We value this strategic partnership with IGC as a model of national integration in developing the gas ecosystem and strengthening the sustainability of supply.

Through its fully integrated value chain, OQ and its international partners contribute to gas production from several major fields that together represent around 40% of Oman’s total gas output. The Group also operates a gas transportation network extending more than 4,000 kilometres across Oman.

Over the past years, OQ has channelled its gas revenues into growth projects valued at nearly USD 29 billion, including the Polymer Complex, the Duqm Refinery (OQ8), and the ammonia, methanol and LPG plants, all of which have played a pivotal role in supporting Oman’s economic development.”

He added: “Reliable gas supply remains essential to accelerating investments in industrial and petrochemical sectors that underpin the government’s diversification agenda, in line with the objectives of Oman Vision 2040.”

Through these strategic initiatives, OQ continues to shape Oman’s gas ecosystem as a catalyst for sustainable growth, building an integrated, future-ready industrial base anchored in efficiency, innovation and environmental responsibility and advancing the national ambition of achieving net zero by 2050.