Muscat: OQ Gas Networks (OQGN) is at the forefront of Oman's economic development, playing a pivotal role in the country's gas transportation infrastructure. With a natural monopoly over essential gas transportation and a strong operational track record, OQGN is well-positioned to support Oman's economic growth and meet the increasing demand for gas.
Oman's resilient and stable economy sets the stage for OQGN's success. The country has been experiencing steady growth, with a projected Real GDP Growth Compound Annual Growth Rate (CAGR) from 2023 to 2025 of 3.7%. Supported by various ratings and indicators, Oman's strong Gross Domestic Product (GDP) outlook is further bolstered by its young and growing population, with approximately 50% of the population under 30 years old in 2023.
Underpinning Oman's economic vision is ‘Oman Vision 2040,’ a comprehensive 20-year plan aimed at diversifying the economy and achieving sustainable fiscal surplus. As part of this vision, OQGN operates under a 50-year concession, granted by the Government of Oman through the Amended Concession Agreement, which provides OQGN with a natural monopoly over the critical gas transportation infrastructure until 2070.
OQGN's monopoly position is crucial as it serves as the link between core Omani gas producers and approximately 130 gas consumers. Through its National Gas Transportation Network (NGTN), OQGN connects producers and consumers through pipelines, gas supply stations, and gas compressor stations. In 2022 alone, OQGN transported 39.4 billion cubic meters (BCM) of gas from six gas producers, utilizing its extensive network of approximately 4,031 kilometers of pipelines.
The stability and reliability of OQGN's operations are evident in its strong operational track record. With consistent gas availability and minimal interruptions, OQGN has earned international certifications, further reinforcing its operational excellence and adherence to industry standards.
The demand for gas in Oman is expected to rise significantly in the coming years, driven by economic activity and industrialization across various sectors. Forecasts indicate that gas demand will range between 37.7 BCM and 54.5 BCM by 2043, highlighting the need for a robust and efficient gas transportation infrastructure.
OQGN's strategic position as the exclusive operator and owner of the NGTN positions the company for future growth. It not only ensures a stable long-term supply of gas but also generates revenue through transportation and connection fees. As Oman's critical industries, including LNG, power generation, desalination, oil and gas, and industrial and commercial sectors, expand, OQGN's role becomes increasingly indispensable.
To support its growth trajectory, Oman has implemented initiatives to attract investment and promote economic diversification. These include consolidating national assets, promoting privatization, and implementing favourable regulatory changes to support Foreign Direct Investment (FDI) flows. These measures create a favourable investment climate for OQGN and other companies in Oman's energy sector.
OQ Gas Networks (OQGN) holds a natural monopoly over essential gas transportation infrastructure, playing a crucial role in Oman's economic growth. With a strong operational track record, OQGN connects gas producers with consumers, meeting the rising demand for gas across various sectors. Supported by Oman's stable economy, Vision 2040, and favourable investment climate, OQGN is well-positioned to capitalize on the growing demand for gas in Oman. The company's exclusive concession, which runs until 2070, ensures its dominance in the gas transportation sector, providing stability and predictability for investors.
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