OQGN firms up planning for Oman’s H2 pipeline network

OQ Gas Networks (OQGN), the national infrastructure provider for hydrogen pipelines in Oman, is playing a pivotal role in advancing the country’s green hydrogen economy. As the sole gas transportation operator in Oman, OQGN has made significant strides in reducing the Levelized Cost of Hydrogen (LCOH) production, a critical factor in making green hydrogen more affordable and accessible.

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OQGN’s Role in Oman’s Green Hydrogen Transition

OQGN, a majority state-owned entity that is part of the OQ Group, is collaborating with various government agencies and public sector stakeholders to develop hydrogen pipeline infrastructure. This collaborative effort aims to foster the growth of Oman’s green hydrogen industry, positioning the country as a global leader in green energy.

During a recent discussion session, OQGN highlighted its financial and operational performance in 2024. A company spokesperson emphasized OQGN’s role in supporting Oman’s energy transition, particularly in the green hydrogen sector.

“OQGN has been at the forefront of working with the government and key stakeholders to advance the energy transition in Oman, with a special focus on developing the green hydrogen economy,” the official stated.

Oman has set ambitious goals to become a leading exporter of green energy, including green hydrogen and its derivatives. By positioning itself as the infrastructure provider for hydrogen transportation, OQGN is helping to lay the groundwork for these aspirations to become a reality.

Collaboration with Hydrom: Shaping Oman’s Hydrogen Future

As part of its commitment to the green hydrogen revolution, OQGN is working closely with Hydrom, the body orchestrating Oman’s green hydrogen initiatives. The two entities are actively involved in the master planning of the hydrogen pipeline network, which will be crucial for transporting green hydrogen to various sectors.

OQGN’s involvement with Hydrom extends to the feasibility study of the pipeline network. This collaborative effort is aimed at addressing the technical, commercial, financial, and legal aspects of the green hydrogen pipeline infrastructure.

“We were one of the first companies to sign a Memorandum of Understanding (MoU) with Hydrom, and we have been working diligently to support the national goal of producing and exporting 1 million tonnes of green hydrogen per year by 2030, with an eventual target of 8 million tonnes by 2050,” a company representative explained. “These ambitious goals will translate into significant pipeline volumes for OQGN, providing ample opportunities for growth.”

Strategic Studies and Revenue Potential

In addition to its work with Hydrom, OQGN has conducted a techno-commercial strategic study to assess the business models and revenue opportunities associated with the green hydrogen sector. The study will provide insights into the potential impacts on OQGN’s operations and the financial benefits of this emerging market.

“OQGN is committed to positioning itself as a key player in this high-potential industry,” the official continued. “We are carefully evaluating the business models that will enable us to maximize our involvement in Oman’s green hydrogen industry, with a strong focus on profitability and sustainability.”

Common Use Infrastructure (CUI) System for Green Hydrogen Projects

Another major development is OQGN’s involvement in finalizing a pre-Front-End Engineering Design (pre-FEED) study for a Common Use Infrastructure (CUI) system. This system will support green hydrogen projects across government-designated land blocks and future projects awarded to the public sector.

OQGN’s role in this initiative is to develop and operate pipeline networks that will transport green hydrogen from these land blocks to a dedicated processing zone near the Port of Duqm. At this facility, green hydrogen will be converted into derivatives like green ammonia, green methanol, and other export commodities. These derivatives will play a critical role in powering industries such as steel and aluminum, which have traditionally been challenging to decarbonize.

“OQGN’s planned hydrogen pipeline network is designed to cater to both current and future green hydrogen projects. By leveraging economies of scale and optimizing the Right of Way (ROW) for infrastructure development, we aim to reduce transportation costs significantly,” the company stated.

OQGN’s Existing Infrastructure: A Strong Foundation for Growth

OQGN currently manages Oman’s 4,235-kilometer-long gas transportation network, delivering natural gas to over 130 major customers. These customers include power and desalination plants, refineries, petrochemical facilities, fertilizer and chemical manufacturers, as well as steel and cement plants across the country. This extensive infrastructure provides OQGN with the experience and capacity to support the growing demand for green hydrogen.

Oman’s Vision for a Green Hydrogen Future

Oman is rapidly positioning itself as a key player in the global green energy market, with green hydrogen at the forefront of its ambitions. With OQGN’s expertise in gas transportation and its strategic collaborations with government and industry stakeholders, the country is set to become a major exporter of green hydrogen in the coming decades.

By focusing on reducing production costs, developing efficient hydrogen transport infrastructure, and supporting industry-wide collaboration, OQGN is helping to lay the foundation for a sustainable, green energy future in Oman. The company’s efforts will be essential in achieving the nation’s ambitious targets and fostering a thriving green hydrogen economy.

Conclusion

OQ Gas Networks is at the heart of Oman’s green hydrogen revolution. Through its partnerships, strategic studies, and extensive experience in gas transportation, OQGN is playing a crucial role in enabling the country’s transition to a green hydrogen economy. As Oman strives to become a global leader in green energy, OQGN’s commitment to developing hydrogen pipeline infrastructure and reducing production costs will be essential in achieving the nation’s ambitious green hydrogen goals.