OQ Gas Networks targets completion of $160m worth projects this year
Published: 03:09 PM,Sep 23,2023 | EDITED : 07:09 PM,Sep 23,2023
MUSCAT, SEPT 23
OQ Gas Networks (OQGN), the wholly state-owned operator of Oman’s national gas transportation network (NGTN), says is it currently implementing a sizable portfolio of projects collectively valued at around $160 million and slated for completion during 2023.
They include major development projects to expand the gas transportation system, connection projects designed to hook up new consumers to the gas supply network, and a host of maintenance projects aimed at maintaining the quality of the company’s network assets and improve gas transportation to critical sectors of the Omani economy.
The portfolio of projects underscores OQGN’s continued growth potential as it prepares to go public via an Initial Public Offering (IPO) as part of an initiative to offer up to 49 per cent of its share capital for public subscription. The IPO opens on Muscat Stock Exchange (MSX) on September 26, 2023.
Among the biggest of these projects currently under implementation is the South Grid De-bottlenecking initiative, centring on, among other things, the installation of a new 32-inch loop line between two block valve stations (approximately 32 kms) on the existing 24-inch southern grid gas pipeline to Salalah. In addition, a new 32-inch loop line will be built from one of the valve stations to the Salalah gas supply station (approximately 177 kms) on the existing 24-inch southern grid gas pipeline to Salalah. Work on the project, first launched in February 2021, is slated for completion next month.
Equally significant is the Central 48-inch Rich & Lean Gas Pipeline Segregation project, based on a request by the Ministry of Energy and Minerals to maximize rich gas utilisation in the network through the segregation of rich and lean gas supply to consumers. Rich gas supply is proposed to be prioritized for the LNG and LPG extraction plants.
Replicating the segregation of rich and lean gas in the southern network, which became operational in 2019, this new project involves similar segregation for the central gas network. As part of this latter project, the existing 48-inch loop line to Sur will be extended by around 65km and earmarked for the delivery of lean gas to consumers not requiring rich gas through a gas network hub construction.
Significantly, when completely, the Central 48 Rich & Lean Segregation project is expected to increase capacity of supply to Oman LNG by approximately 6 billion cubic metres (BCM) per year. Launched in September 2021, it is due for completion in October 2024.
Besides, in addition to a number of debottlenecking projects, OQ Gas Networks is hooking up the following industrial consumers to its gas networks: Keryas Paper Industries, Global Development & Cont, Saheer Al Maaden, Al Namariq, Pride Packaging, Bolten Beads & Horizon, Salalah Mills, Dhofar Fishers, and Gulf Gypsum Products.
Connection projects linked to the Duqm SEZAD Phase II Pipeline, as well as gas supply to Oman Oil Seed Crushing Factory and Oman Sugar Refinery are in various stages of progress as well.
OQGN’s gas pipeline system currently extends a total length of over 4,000 kilometres.
OQ Gas Networks (OQGN), the wholly state-owned operator of Oman’s national gas transportation network (NGTN), says is it currently implementing a sizable portfolio of projects collectively valued at around $160 million and slated for completion during 2023.
They include major development projects to expand the gas transportation system, connection projects designed to hook up new consumers to the gas supply network, and a host of maintenance projects aimed at maintaining the quality of the company’s network assets and improve gas transportation to critical sectors of the Omani economy.
The portfolio of projects underscores OQGN’s continued growth potential as it prepares to go public via an Initial Public Offering (IPO) as part of an initiative to offer up to 49 per cent of its share capital for public subscription. The IPO opens on Muscat Stock Exchange (MSX) on September 26, 2023.
Among the biggest of these projects currently under implementation is the South Grid De-bottlenecking initiative, centring on, among other things, the installation of a new 32-inch loop line between two block valve stations (approximately 32 kms) on the existing 24-inch southern grid gas pipeline to Salalah. In addition, a new 32-inch loop line will be built from one of the valve stations to the Salalah gas supply station (approximately 177 kms) on the existing 24-inch southern grid gas pipeline to Salalah. Work on the project, first launched in February 2021, is slated for completion next month.
Equally significant is the Central 48-inch Rich & Lean Gas Pipeline Segregation project, based on a request by the Ministry of Energy and Minerals to maximize rich gas utilisation in the network through the segregation of rich and lean gas supply to consumers. Rich gas supply is proposed to be prioritized for the LNG and LPG extraction plants.
Replicating the segregation of rich and lean gas in the southern network, which became operational in 2019, this new project involves similar segregation for the central gas network. As part of this latter project, the existing 48-inch loop line to Sur will be extended by around 65km and earmarked for the delivery of lean gas to consumers not requiring rich gas through a gas network hub construction.
Significantly, when completely, the Central 48 Rich & Lean Segregation project is expected to increase capacity of supply to Oman LNG by approximately 6 billion cubic metres (BCM) per year. Launched in September 2021, it is due for completion in October 2024.
Besides, in addition to a number of debottlenecking projects, OQ Gas Networks is hooking up the following industrial consumers to its gas networks: Keryas Paper Industries, Global Development & Cont, Saheer Al Maaden, Al Namariq, Pride Packaging, Bolten Beads & Horizon, Salalah Mills, Dhofar Fishers, and Gulf Gypsum Products.
Connection projects linked to the Duqm SEZAD Phase II Pipeline, as well as gas supply to Oman Oil Seed Crushing Factory and Oman Sugar Refinery are in various stages of progress as well.
OQGN’s gas pipeline system currently extends a total length of over 4,000 kilometres.