OQ Gas Networks Secures Approval for Major 193km Pipeline Project from Fahud to Sohar

OQ Gas Networks Secures Approval for Major 193km Pipeline Project from Fahud to Sohar

Muscat, Oman – In a significant step toward strengthening Oman’s energy infrastructure, OQ Gas Networks (OQGN) has officially received regulatory approval for the development of a major new pipeline project. The initiative involves the construction of a 193-kilometre, 42-inch diameter loop line that will connect Fahud to Sohar, playing a key role in meeting the growing natural gas demands of the northern region.

Described as one of the most ambitious infrastructure projects undertaken by OQGN under the Regulated Asset Base (RAB) framework, the new pipeline will add an impressive 9 million standard cubic meters per day (MMSm3/d) of capacity to OQGN’s northern gas network. The project is directly aligned with Oman’s Vision 2040 and national energy strategy, which aims to ensure sustainable growth and reliable energy supply across the Sultanate.

Supporting Industrial Growth in Sohar and Ibri

The new loop line will significantly benefit the Sohar and Ibri regions, known for their expanding industrial and power generation sectors. By enhancing gas transportation capabilities, the pipeline will ensure a steady and efficient supply of natural gas to critical industries such as:

• Power generation

• Water desalination

• Cement manufacturing

• Aluminium production

• Fertiliser and petrochemical industries

OQGN emphasized in a statement to the Muscat Stock Exchange that the project is not only crucial for meeting immediate demand but also essential for long-term energy security and infrastructure expansion in Oman.

Project Timeline and Investment

The Fahud–Sohar loop line project is scheduled for completion by 2027. According to earlier reports by Zawya Projects, the Engineering, Procurement, and Construction (EPC) contract—valued at approximately $200 million—is expected to be awarded in the first quarter of 2025.

This strategic investment underlines OQGN’s continued commitment to upgrading its network and supporting Oman’s broader economic goals, particularly in the energy and industrial sectors.

OQGN’s Expanding Gas Network

OQGN currently manages over 4,030 kilometers of natural gas pipelines across Oman, serving as the sole operator and owner of the nation’s natural gas transmission network. The company maintains a natural monopoly, ensuring efficient, safe, and cost-effective gas delivery to both public utilities and private enterprises.

With this new loop line, OQGN aims to further improve operational flexibility, reliability, and redundancy within the network—critical factors as demand continues to rise in Oman’s growing industrial corridors.

Strategic Importance of the Project

By facilitating increased capacity and operational efficiency, the project is expected to:

• Strengthen gas supply security in northern Oman

• Support economic diversification through industrial expansion

• Enable OQGN to respond quickly to future energy needs

• Align with Oman’s sustainability and energy transition goals

The company reassured stakeholders that it will provide regular updates on the project’s progress and any key developments as they unfold.

Looking Ahead

As Oman continues to invest in sustainable and resilient energy infrastructure, projects like the Fahud to Sohar loop line serve as a testament to the country's forward-looking strategy. With the regulatory green light now in place, OQGN is set to begin a transformative chapter in enhancing the Sultanate’s energy logistics.

This new pipeline is not just a piece of infrastructure—it is a critical enabler of national growth, industrial success, and energy reliability for years to come.