FERUARY 27, 2024

Oman’s OQGN affirms focus on hydrogen, CCUS opportunities

OQ Gas Networks (OQGN), the majority-state owned operator of Oman’s gas transportation system, recorded revenues of RO 174 million in 2023, up from RO 160.4 million a year earlier.

Posting its maiden annual financial report as a publicly-traded company following its listing on the Muscat Stock Exchange (MSX) last year, OQGN – part of OQ Group – also reported an uptick in profits at RO 55.5 million, up from RO 45.6 million in 2022.

“2023 has been a pivotal year for OQGN, marked by significant financial growth, operational excellence, and strategic advancements towards sustainability and community engagement,” the monopoly operator of Oman’s gas networks said in a report of its performance for the year.

Listing improvements in other key financial indicators, OQGN also reported a 4.5% increase in concession receivable and contract assets, reaching RO 1.042 billion as of end-2023.

EBITDA (earnings before interest, taxes, depreciation, and amortization) climbed to RO 84 million, up from RO 71 million a year earlier. Regulated Adjusted EBITDA rose to RO 107 million, up from RO 96 million in 2022, it noted.

On the operational front, the company achieved a “record-setting” delivery of 40.5 BCM of natural gas in 2023. It also delivered a total of 13 growth projects, with a combined investment of RO 132.5 million, aimed at expanding its operational capacity and infrastructure.

In support of the energy transition under way in the Sultanate of Oman, OQGN plans to leverage its massive pipeline networks and other assets to explore opportunities linked to the new green hydrogen industry, as well as the emerging Carbon Capture, Utilisation & Storage (CCUS) sector.

“Looking ahead, OQGN is poised to expand its core gas midstream services and explore new avenues in hydrogen and carbon dioxide transportation. Our engagement in MoUs with industry partners on hydrogen and CCUS initiatives positions us at the forefront of the energy transition, aligning with global sustainability trends and Oman’s strategic energy goals,” the company said.

One such MoU signed with Occidental of Oman (Oxy) last October aims to jointly study potential CCUS projects in conjunction with enhanced oil recovery (EOR) projects at Oxy’s production assets in Oman. Both sides will also seek to develop strategies enabling the deployment of CCUS projects, including carbon capture, the transport of carbon dioxide to Oxy’s production assets for EOR, and supporting the development of relevant policies and procedures.

Separately, OQGN has signed an MoU with Belgian-based energy infrastructure group Fluxys to explore cooperation in the establishment of hydrogen and carbon dioxide (CO2) infrastructure projects in Oman. Fluxys is an investor in OQGN, having acquired a 4.9% stake during the latter’s initial public offering of 49% of its stake.

Source: Oman Observer