MUSCAT: Integrated Gas Company SAOC (IGC), the sole aggregator and supplier of natural gas in the Sultanate of Oman, has launched an inaugural direct consumer engagement initiative aimed at fostering active conversations with large-scale industrial and power sector consumers of natural gas as part of a strategic bid to evaluate future trends in gas demand within the country.
This strategic initiative, led by IGC’s Chief Executive Officer (CEO), Abdulrahman al Yahyaei, involves site visits to witness the operations of some of the largest industrial gas consumers. These visits have also strengthened IGC’s visibility and important role as the natural gas aggregator in Oman via productive interactions with the consumers’ top leadership teams. Key players in the industrial hubs of Suhar, Sur, Duqm and Salalah will be given priority during this countrywide endeavour.
In remarks to the Observer, Al Yahyaei said that the primary objective of these visits is to engage directly with IGC’s key industrial partners who rely on natural gas either for electricity generation or as feedstock within their process plants.
“We aim to better understand their current operations, future expansion plans, and how we can continue to support them through efficient and reliable supply of natural gas. These visits also allow us to ensure the alignment of our strategic objectives with Oman’s broader economic development goals, particularly in relation to energy supply and sustainability.”
The current series of engagements, the CEO explained, aim to cover a wide range of end-users, from large-scale industries such as steel manufacturers and petrochemical plants, to other small-scale industrial consumers.
“Our current focus is on the industries with significant gas consumption as the reliable supply of natural gas plays a pivotal role within their operations. Our aim is to ensure these consumers are supported. Their positive contributions toward keeping Oman’s economy buoyant is well recognized.”
Having covered several plants in Salalah Free Zone, the IGC team has now commenced tours of strategic projects in Suhar, with industrial facilities in Sur and Duqm proposed to be visited as well. “Each of these regions hosts important industries with distinct gas consumption profiles, and it is essential to ensure we address their needs and explore opportunities for future growth,” the CEO noted.
Applications for new gas allocations, Al Yahyaei said, will be assessed against criteria that have been aligned with national priorities. Key criteria include the strategic importance of the project, its contribution to the GDP, impact on job creation and employment, technological advancement, and alignment with Oman’s energy diversification objectives and the national path towards Net Zero. Each project will be carefully evaluated based on these important criteria, which have been meticulously aligned with other critical stakeholders, he stressed.
As for concerns around gas availability and pricing, state-owned IGC – which is 100% owned by the Ministry of Finance (MOF) - maintains a similar position to the Ministry of Energy and Minerals (MEM), the CEO stated.
“We are committed to ensuring that natural gas is supplied at competitive rates, provided that the project demonstrates a clear strategic contribution to the national economy, job creation, and long-term sustainability. These principles remain central to our decision-making process. In addition, IGC’s gas allocation strategy has identified other key aspects for gas allocation linked with the achievement of Oman Vision 2040. Decarbonization elements and mandates are aligned with achieving Net Zero Goals 2050 apart from other goals and objectives at national level.”
In concluding, Al Yahyaei said that the visits have reinforced the critical role that natural gas plays in supporting Oman’s industrial sector and the broader economy. “We’ve gained valuable insights into the challenges faced by, as well as the opportunities that abound within different industries. These engagements have identified solutions for working together more effectively while emphasizing the importance of continued investment in the gas network and related infrastructure to meet both current and future demands,” he added.
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