Oman’s OQGN plans $1bn pure hydrogen network

Oman’s state-controlled OQ Gas Networks (OQGN) reportedly plans to spend nearly $1 billion to build a dedicated hydrogen network rather than repurposing existing infrastructure.

“Repurposing might happen later, but not during this initial buildout,” CEO Mansoor Ali Al Abdali told The Energy Year, a financial news outlet.

The company plans to develop around 200km of pipeline in Duqm, potentially extending to Salalah.

Al Abdali said the company’s final investment decision (FID) depends, however, on whether hydrogen developers make their own FIDs. 

“The government has awarded five concessions in Duqm, but we need clarity on which will proceed,” he said.

In May 2025, the company signed a collaboration agreement with Belgium-based Fluxys on hydrogen network development and with Netherlands-headquartered Gasunie to explore development of the European-Omani hydrogen link.

Construction is underway on the 193km Fahud-to-Sohar loop line, which will add 9 million metric standard cubic metres per day to OQGN’s northern gas network capacity.

The Muscat-listed company owns and operates more than 4,200 km of high-pressure gas pipelines and manages gas distribution at industrial sites, including those operated by state-run Madayn.

Further reading:

• Middle East to capture 10% of global hydrogen investment
• Oman advances liquefied hydrogen export project
• OQGN invites bids for Oman’s first carbon-capture pipeline

Saudi Arabia’s Public Investment Fund and the Qatar Investment Authority invested in OQGN during its initial public offering in 2023.

The company is in discussions with Sohar Industrial City to build a 200km carbon dioxide pipeline for carbon capture, utilisation and storage and to support decarbonisation objectives.

“We are studying regional expansion across the GCC and markets where our model could be replicated,” the CEO said.

OQGN shares closed at OMR0.201 on Thursday, up 40 percent in the last year.