Energy and utility sectors perform steadily in 2024

MUSCAT: Oman’s energy sector continues to evolve as a cornerstone of the nation’s economic strategy, reflecting resilience, adaptability, and a forward-looking vision. The latest report from the National Centre for Statistics and Information (NCSI) for the period ending September 2024 provides a detailed account of the sector’s performance across oil, gas, refineries, petrochemicals, electricity, and water.

Oil Amidst global oil market volatility, Oman’s oil sector has showcased a steady trajectory of growth. Daily production also rose significantly to an average of 1.0408 million barrels during the first nine months of 2024, compared to 994,500 barrels in 2023.

The average price per barrel saw a modest yet notable increase, climbing to $83.9 from $80.5 in 2023. This reflects the Sultanate’s ability to maintain competitive pricing amidst fluctuating global demand. Oil exports, however, witnessed a slight dip in September 2024, standing at 25,092.5 thousand barrels, compared to 25,279.4 thousand barrels in September 2023. This balance of production and export levels underscores the sector’s commitment to maintaining stability while meeting international obligations.

Gas Natural gas remains a cornerstone of Oman’s industrial and energy strategies. Total production and imports surged to 42,222.1 million m3 by September 2024, up from 40,585.5 million m3 the previous year. The gas sector’s ability to meet rising demand is further evidenced by a significant increase in consumption by power generation plants, which reached 1,402.8 million m3, compared to 846.8 million m3 in 2023.

This surge in gas utilization highlights its pivotal role in driving Oman’s transition towards cleaner energy solutions and ensuring the uninterrupted operation of industrial and residential utilities.

Refineries The refinery sector demonstrated a mixed performance in 2024, with total output decreasing to 57,410.6 thousand barrels, compared to 62,648.4 thousand barrels in 2023. However, within this decline lies an interesting shift in market dynamics. Production of premium-grade fuel (95) experienced a significant rise, climbing to 1,328.2 thousand barrels from 609.1 thousand barrels in the previous year. This reflects a shift in consumer preferences toward higher-quality fuels, possibly driven by evolving market demands and improved economic conditions.

Conversely, regular-grade fuel (91) saw a notable decline, with production dropping to 496.9 thousand barrels from 770.7 thousand barrels in 2023. This divergence in production trends highlights the sector’s ability to adapt to changing consumption patterns and focus on high-value products.

Petrochemicals Oman’s petrochemical sector continues to strengthen its position as a key contributor to economic diversification. By September 2024, the production of polypropylene—a flagship product—rose to 81.1 thousand metric tonnes, up from 61.1 thousand metric tonnes in 2023. This growth is indicative of the sector’s ability to meet rising global demand for high-quality petrochemical products.

Total petrochemical production, however, showed a slight decline, standing at 699.6 thousand metric tonnes compared to 722.5 thousand metric tonnes in the previous year. This modest contraction underscores the importance of ongoing investments to further optimize production capacity and meet international market needs.

Electricity Oman’s electricity sector has continued its steady upward trajectory, mirroring the nation’s expanding urban and industrial landscape. Total electricity generation reached 37,584.7 GWh by September 2024, up from 34,777.4 GWh in 2023. Net electricity production followed a similar trend, increasing to 36,210.9 GWh, compared to 33,741.8 GWh in the previous year.

Water Water resource management in Oman reflects the Sultanate’s commitment to sustainability and resilience in the face of growing demand. By September 2024, total water production stood at 383,391.7 thousand m3, a slight decline from 390,727.3 thousand m3 in 2023. However, Muscat Governorate recorded a remarkable increase in water production, reaching 20,076.4 thousand m3, up from 17,793.7 thousand m3 in the previous year.