Oman advances CO₂ pipeline for CCUS and blue hydrogen
Published: 01:07 PM,Jul 09,2024 | EDITED : 08:07 PM,Jul 09,2024
OQGN is spearheading the conceptualisation of a comprehensive CO2 (carbon dioxide) pipeline network in Oman
MUSCAT: In an ambitious move to meet the requirements of early adopters in carbon capture and storage (CCUS) and blue hydrogen (Blue H₂) sectors, OQ Gas Networks (OQGN) — Oman’s sole gas transmission operator and owner — is spearheading the conceptualisation of a comprehensive CO₂ (carbon dioxide) pipeline network in Oman. This initiative is a critical component of Oman’s larger strategy to align with the Oman Vision 2040 and the nation’s Net Zero Emissions (NZE) target by 2050.
During the inaugural launch of ‘Talks with CEOs @ U Capital’, Eng Mansoor al Abdali, Chief Executive Officer of OQGN reiterated that Oman’s Ministry of Energy and Minerals (MEM) is at the helm of this extensive project, meticulously developing CCUS and Blue H₂ regulations and policies in collaboration with key stakeholders.
A Steering Committee led by MEM has been established to streamline efforts across various workstreams. These include CO₂ capture led by Oxy, CO₂ transport managed by OQGN, CO₂ oil and gas utilisation overseen by MEM, CO₂ storage directed by Petroleum Development Oman (PDO), blue products and synthetic fuels handled by Shell, and international opportunities in CCUS coordinated by MEM.
Al Abdali added that to accelerate investment in CCUS and Blue H₂, the Ministry of Energy and Minerals initiated the CCUS Core Team structure in late 2023. This team is pivotal in driving forward the nation’s environmental and economic objectives. 'OQGN plays a crucial advisory role, providing MEM with insights on the regulatory and techno-commercial aspects of CO₂ transport. This collaboration is essential to enable first movers in the industry, with MEM designating Trailblazer Project status to three commercial-scale CCUS projects,' he said.
OQGN is also collaborating under a Joint Steering Agreement (JSA) with Shell, OQ, and PDO on the Blue Horizons project, currently in its pre-Front End Engineering Design (pre-FEED) phase. This project is essential in developing a viable CCUS value chain. OQGN is exploring attractive commercial models with Blue Horizons Inc. to ensure the project’s financial viability.
Additionally, OQGN is actively collaborating with Oxy to develop a competitive CCUS value chain that meets Oxy’s requirements for CO₂ Enhanced Oil Recovery (EOR). This partnership, built on a Memorandum of Understanding (MoU) signed in 2023, involves an ongoing feasibility study for the CO₂ pipeline. This study aims to assess the technical and commercial feasibility of the pipeline, which is a critical infrastructure component for the success of CCUS projects.
As Oman pushes forward with its Vision 2040 and NZE by 2050 targets, the collaborative efforts led by OQGN and supported by MEM and other key stakeholders are crucial. These initiatives not only aim to reduce carbon emissions and develop sustainable energy solutions but also position Oman as a leader in the global energy transition.
‘Talks with CEOs at U Capital’ is an initiative by Ubhar Capital SAOC (U Capital), a leading financial services firm. In this series, CEOs and CFOs from top companies in Oman interact with the investor community. In this inaugural event, U Capital hosted Mansoor al Abdali, CEO of OQGN, and Khalid al Qassabi, CFO of OQGN, who showcased their investment case enhanced by green hydrogen technologies in Oman.
During the inaugural launch of ‘Talks with CEOs @ U Capital’, Eng Mansoor al Abdali, Chief Executive Officer of OQGN reiterated that Oman’s Ministry of Energy and Minerals (MEM) is at the helm of this extensive project, meticulously developing CCUS and Blue H₂ regulations and policies in collaboration with key stakeholders.
A Steering Committee led by MEM has been established to streamline efforts across various workstreams. These include CO₂ capture led by Oxy, CO₂ transport managed by OQGN, CO₂ oil and gas utilisation overseen by MEM, CO₂ storage directed by Petroleum Development Oman (PDO), blue products and synthetic fuels handled by Shell, and international opportunities in CCUS coordinated by MEM.
Al Abdali added that to accelerate investment in CCUS and Blue H₂, the Ministry of Energy and Minerals initiated the CCUS Core Team structure in late 2023. This team is pivotal in driving forward the nation’s environmental and economic objectives. 'OQGN plays a crucial advisory role, providing MEM with insights on the regulatory and techno-commercial aspects of CO₂ transport. This collaboration is essential to enable first movers in the industry, with MEM designating Trailblazer Project status to three commercial-scale CCUS projects,' he said.
OQGN is also collaborating under a Joint Steering Agreement (JSA) with Shell, OQ, and PDO on the Blue Horizons project, currently in its pre-Front End Engineering Design (pre-FEED) phase. This project is essential in developing a viable CCUS value chain. OQGN is exploring attractive commercial models with Blue Horizons Inc. to ensure the project’s financial viability.
Additionally, OQGN is actively collaborating with Oxy to develop a competitive CCUS value chain that meets Oxy’s requirements for CO₂ Enhanced Oil Recovery (EOR). This partnership, built on a Memorandum of Understanding (MoU) signed in 2023, involves an ongoing feasibility study for the CO₂ pipeline. This study aims to assess the technical and commercial feasibility of the pipeline, which is a critical infrastructure component for the success of CCUS projects.
As Oman pushes forward with its Vision 2040 and NZE by 2050 targets, the collaborative efforts led by OQGN and supported by MEM and other key stakeholders are crucial. These initiatives not only aim to reduce carbon emissions and develop sustainable energy solutions but also position Oman as a leader in the global energy transition.
‘Talks with CEOs at U Capital’ is an initiative by Ubhar Capital SAOC (U Capital), a leading financial services firm. In this series, CEOs and CFOs from top companies in Oman interact with the investor community. In this inaugural event, U Capital hosted Mansoor al Abdali, CEO of OQGN, and Khalid al Qassabi, CFO of OQGN, who showcased their investment case enhanced by green hydrogen technologies in Oman.