OQGN to expand Oman's natural gas network with launch of Saib Project

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MUSCAT: OQ Gas Networks SAOG (OQGN), the exclusive operator of Oman's natural gas transmission network, is set to inaugurate the Saib Project — a new 208 km gas pipeline in Dhofar Governorate on August 26. This strategic growth project aims to increase the gas network's capacity in Dhofar Governorate, addressing the growing demand for natural gas to keep pace with the population increase, urban development, and economic growth. As a result, the gas network's capacity will increase by 60% from 10 to 16 million cubic metres per day.

The inauguration ceremony will be held under the auspices of Sayyid Marwan bin Turki al Said, Governor of Dhofar, along with government officials, community leaders, OQGN Board of Directors, key stakeholders, and contractors. The project consists of two loops: Loop 1 – 32 KM at Hubara in the wilayat of Haima and Loop 2 – 176 KM from Harweel to Raysut station in Salalah, with a total of 208 km of 32-inch pipeline alongside the existing 24-inch pipeline. The scope of work includes the extension of 6 shut-off valve stations and 3 new launching and receiving stations.

In a media conference held yesterday, Eng Haitham bin Zaher al Shiraiqi, VP Project Delivery OQGN, stated, "This strategic project comes within the framework of the company's plans to increase the capacity of the gas transmission network in Dhofar Governorate and in response to the increasing demand for gas to keep pace with population increase, urban development, and economic growth."

Currently, OQGN manages 4,045 kms of gas pipelines, along with three compressor stations and 29 gas supply stations, ensuring energy delivery to 130 major consumers, including power plants, desalination facilities, and various industrial complexes.

By 2024, OQGN plans to increase the pipeline length to 4,222 kms, further extending it to 4,287 kms in 2025, 4,344 kms in 2026, and 4,472 kms by 2027. Network capacity is expected to rise from 69.3 billion standard cubic metre (SCM) in 2023 to 71.1 billion SCM in 2024, 77.1 billion SCM in 2025 and 2026, and 79.7 billion SCM by 2027.

Correspondingly, the volume of gas transported is projected to increase from 40.5 billion SCM in 2023 to 41.7 billion SCM in 2024, 43 billion SCM in 2025, 44.3 billion SCM in 2026, and 45.6 billion SCM by 2027.

Faisal bin Ali al Mamari, VP People, Technology and Culture, explained that the company's future plans include many projects and initiatives that are currently under study in coordination with the relevant government agencies, aiming to increase the gas capacity for all parties in the Sultanate of Oman. "There is a second project that will be announced soon that will increase the capacity of gas networks in the Sultanate of Oman," he said. He also emphasised that financing these projects will not impact the distribution of profits that OQ Gas Networks has committed to shareholders during the years 2024 and 2025.

Ahmed bin Ibrahim al Hadhrami, Head of Corporate Identity and Culture, noted, "The total gas transfer to all 160 consumers amounted to 120 million cubic metres per day, with the gas availability rate reaching 99.99 per cent through the presence of 25 gas supply stations and 3 compression stations." He highlighted the company's workforce, stating, "The number of employees in the company reached 469, of whom 94 per cent are Omanis in general and 100 per cent in senior positions. The company seeks to attract specialised competencies in the field of zero neutrality during the coming period."

OQGN’s robust expansion plans include developing new pipeline segments and compressor stations to enhance gas transportation efficiency, ensuring the network's growth and meeting the nation's energy demands.

OQGN manages 4,045 kms of gas pipelines, along with three compressor stations and 29 gas supply stations.