OQ Gas Networks SAOG Invests $2 Billion in Oman’s Renewable Energy Projects
OQ Gas Networks SAOG (OQGN) has announced a landmark $2 billion investment in renewable energy projects across Oman. This significant financial commitment will fund the development of green hydrogen and green ammonia facilities, aligning with Oman’s broader national strategy to bolster its clean energy infrastructure.
Green Hydrogen and Ammonia Plants to Drive Renewable Energy Goals
The funding will be directed toward several ambitious projects, including Hyport Duqm, a joint venture with OQ, the Port of Antwerp, and the DEME Group. Located in the Duqm Special Economic Zone, Hyport Duqm is a trailblazing green hydrogen and ammonia project designed to achieve a 500 MW capacity for green hydrogen and produce 650,000 tonnes of green ammonia per year.
In partnership with Korea Gas Corporation (KOGAS), OQ is also advancing the Salalah Green Hydrogen Project, which aims to generate 1,000 tonnes of green hydrogen annually. This project leverages both wind and solar power, underscoring a strong commitment to sustainable energy production.
Another pivotal initiative is the Hydrogen Oman Project (H2Oman), a collaboration among OQ, InterContinental Energy, and EnerTech. It targets the production of up to 25 GW of green hydrogen and ammonia, positioning Oman as a formidable player in the global green hydrogen market.
OQGN’s Network Expansion to Support Industrial Growth
Following a successful IPO, OQ Gas Networks is expanding its natural gas network to support burgeoning industrial projects throughout Oman. The company is poised to invest $500 million (195 million riyals) in 2024, with an overall allocation of $2 billion (780 million riyals) over the next five years. This strategic expansion is crucial for meeting the escalating demand for natural gas spurred by new industrial zones and projects.
OQ Gas Networks currently manages an extensive 4,031-kilometer network of natural gas pipelines across Oman and plans to add another 1,000 kilometers. This extension is vital to support the energy requirements of new industrial undertakings, which are anticipated to fuel significant economic growth in the years ahead.
Oman’s National Commitment to Clean Energy
Oman’s government has set ambitious renewable energy targets, with the goal for renewables to constitute 30% of its energy mix by 2030. The country also aspires to achieve net-zero carbon emissions by 2050. Supporting these objectives are strategic initiatives, including the development of several large-scale Oman renewable energy projects.
In addition to green hydrogen and ammonia, Oman is advancing various solar and wind energy projects. Notable examples include the Ibri II Solar Project, expected to generate 500 MW of solar power, and the Dhofar Wind Power Project, which will produce 50 MW of wind energy.
These projects are integral to Oman’s broader strategy to diversify its energy portfolio and reduce its reliance on fossil fuels. By investing in renewable energy, Oman aims to reduce its carbon footprint and contribute to global efforts to combat climate change.
Oman’s Growing Role in the Global Energy Market
Oman’s renewable energy initiatives are part of a larger movement in the Middle East, where countries are increasingly investing in clean energy to lower carbon emissions and diversify their economies. Oman is positioning itself as a key contender in the global renewable energy market, with plans to export green hydrogen and ammonia internationally.
The development of these projects will not only help Oman achieve its renewable energy targets but also create new economic opportunities. As the nation continues to invest in renewable energy, it is poised to play a pivotal role in the global transition toward a more sustainable energy future.
