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OQGN Starts Conceptualizing Oman’s CO2 Pipeline Network

OQ Gas Networks (OQGN), the operator of Oman’s national gas transportation system, announced that it has begun mapping out a CO? pipeline network to support the decarbonization requirements of early adopters of Carbon Capture, Utilization and Storage (CCUS) technology – a key pathway to achieving Oman’s Net-Zero goals.

Publicly traded OQGN – part of Oman’s integrated energy group OQ – disclosed the plan during a recent conference call to discuss the company’s financial and operational performance for the first half of 2025.

“OQGN is conceptualizing a CO? pipeline network to meet first movers’ requirements,” company officials stated in a presentation. “OQGN is working with key partners to progress the Northern CCUS opportunity. The first phase of development has been identified to pursue potential capture of CO? from a power plant.”

Additionally, the operator is collaborating with Occidental of Oman (Oxy) to build an integrated CCUS value chain to meet the latter’s requirements for CO?-Enhanced Oil Recovery (EOR), including the commercial aspects of developing a CO? transportation pipeline. EOR operators such as Oxy plan to use captured CO? for injection into reservoirs to boost crude output while simultaneously storing the CO? underground.

"We are now focusing on a particular opportunity in northern Oman, which is to support an EOR project with Oxy. The idea is to develop a safe and effective system to route CO? from emission sites in Suhar and Ibri to a block in northern Oman operated by Oxy for EOR. Both teams, with the support of policymakers, are converging on a feasibility or concept realization of this opportunity,” an official explained.

Other likely first movers with a stake in the development of a CO? pipeline include developers of blue hydrogen and blue ammonia projects that reform natural gas into hydrogen or ammonia while capturing the CO? byproduct for storage or utilization.

Also among the prospective early adopters are energy, industrial, and petrochemical companies – such as oil refineries, power plants, and steel or cement producers – that plan to capture CO? emissions from their facilities as part of CCUS initiatives.

Officials further highlighted OQGN’s support for the Omani government in decarbonizing the national economy, noting in particular its collaboration with the Ministry of Energy and Minerals in formulating a National CCUS Regulatory and Policy Framework. OQGN leads the CO? Transportation Workstream of this framework, while other stakeholders are responsible for complementary areas: Oxy (CO? Capture), Petroleum Development Oman (CO? Storage), and Shell (Blue Products and Synthetic Fuels).

Preliminary master plans for CO? pipeline development have already been assessed, with OQGN formally recognized as the country’s CO? transporter responsible for owning, operating, and maintaining Oman’s CO? transmission network.

Separately, OQGN is also advancing the master planning of an optimal hydrogen pipeline network to cater to both awarded and future green hydrogen developers. This network will leverage economies of scale and Right of Way (ROW) efficiencies to reduce transportation costs.

In addition, OQGN is actively engaged in a feasibility study led by Hydrom – the orchestrator of Oman’s green hydrogen industry – to align on technical, commercial, legal, and financial considerations, officials added.

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