By: Zawya

OQ Gas Networks (OQGN), the operator of Oman’s national gas transportation system, has announced that it has begun mapping out a CO₂ pipeline network. This initiative is designed to support the decarbonisation requirements of early adopters of Carbon Capture, Utilisation and Storage (CCUS) technology, a key pathway for achieving Oman’s Net-Zero goals.

The publicly traded company, which is part of Oman’s integrated energy group OQ, disclosed the plan during a recent conference call to discuss its financial and operational performance for the first half of 2025. Company officials stated that OQGN is conceptualizing the network to meet first movers’ requirements and is working with key partners to progress a Northern CCUS opportunity. The first phase of development has been identified to pursue the potential capture of CO₂ from a power plant.

A significant part of this effort involves a collaboration with Occidental of Oman (Oxy) to build an integrated CCUS value chain. This partnership aims to meet Oxy’s requirements for CO₂-Enhanced Oil Recovery (EOR), including the commercial aspects of developing a CO₂ transportation pipeline. The project focuses on developing a system to route captured CO₂ from emission sites in Suhar and Ibri to a block in northern Oman operated by Oxy for EOR. Both teams, with the support of policymakers, are converging on a feasibility study for this opportunity.

Other likely first movers in the CO₂ pipeline development include developers of blue hydrogen and blue ammonia projects, which reform natural gas while capturing the CO₂ byproduct. Energy, industrial, and petrochemical companies—such as oil refineries, power plants, and steel or cement producers—are also among the prospective early adopters planning to capture CO₂ emissions from their facilities as part of CCUS initiatives.

Officials further highlighted OQGN’s role in supporting the Omani government to decarbonize the national economy. The company is collaborating with the Ministry of Energy and Minerals to formulate a National CCUS Regulatory and Policy Framework, leading the CO₂ Transportation Workstream. Other stakeholders are responsible for complementary areas: Oxy (CO₂ Capture), Petroleum Development Oman (CO₂ Storage), and Shell (Blue Products and Synthetic Fuels).

Preliminary master plans for CO₂ pipeline development have already been assessed, with OQGN formally recognized as the country’s designated CO₂ transporter, responsible for owning, operating, and maintaining the national CO₂ transmission network.

In a separate but related initiative, OQGN is also advancing the master planning of an optimal hydrogen pipeline network. This network is intended to cater to both awarded and future green hydrogen developers by leveraging economies of scale and Right of Way (ROW) efficiencies to reduce transportation costs. The company is additionally engaged in a feasibility study led by Hydrom, the orchestrator of Oman’s green hydrogen industry, to align on technical, commercial, legal, and financial considerations.