Muscat: OQ is advancing studies for a fresh slate of large energy projects aimed at extracting more value from Oman’s hydrocarbons, strengthening Duqm’s industrial corridor and preparing the state-owned group for further investment decisions across gas, petrochemicals, storage and export infrastructure.
The projects under study include the Oman Petrochemical Complex, the Saih Nihayda natural gas liquids extraction project, the Nahada–Ras Markaz oil pipeline and expanded crude storage infrastructure at Ras Markaz, placing midstream and downstream assets at the centre of the group’s next growth phase. The programme follows more than $20 billion of investment in strategic assets spanning refining, polymers, ammonia, LPG, utilities, storage and trading operations.
OQ Group Chief Executive Officer Ashraf Hamed Al Mamari has framed the next investment cycle around growth activation, targeted financial returns, expansions and acquisitions. The focus is on moving beyond conventional production into integrated value chains where gas, condensates, crude logistics and petrochemical feedstocks can be processed, stored, exported or converted into higher-value products within Oman.
The Saih Nihayda NGL project is emerging as a pivotal component of this strategy. The proposed facility is designed to process gas and produce ethane, propane, butane and condensates, with associated pipelines and fractionation facilities linking upstream supply to downstream demand in Duqm. A gas supply term sheet signed with the Integrated Gas Company covers 48 million cubic metres of natural gas per day for 20 years, while a second phase provides for gas allocation to the planned Duqm Petrochemicals Complex, with potential ethane output of one million tonnes a year.
That project would deepen the industrial logic behind Duqm, where OQ has already anchored refining, storage, utilities and export capabilities. The Duqm Refinery, operated through OQ8 as a joint venture between OQ and Kuwait Petroleum International, has become one of Oman’s largest industrial assets, with investment exceeding $9 billion and processing capacity of 255,000 barrels per day. OQ has said its cumulative Duqm investments exceed $10 billion across refining, petrochemicals, storage and export facilities.
Ras Markaz is central to the logistics component of the plan. The crude storage terminal, operated by Oman Tank Terminal Company, is positioned outside the Strait of Hormuz and linked to the Duqm refinery by pipeline. OQ’s published project information describes the terminal as a strategic asset for crude handling, while its Duqm update cited partnerships with Royal Vopak and Iraq’s State Oil Marketing Organization to strengthen storage and export capabilities.
The proposed Nahada–Ras Markaz pipeline would add another layer to Oman’s crude logistics network by linking the Main Oil Line in central Oman with the Ras Markaz storage hub near Al Duqm. The route, estimated at about 360 to 440 kilometres, would provide greater flexibility for crude movement, blending, storage and export, while reducing reliance on older routes and reinforcing Duqm’s role as an energy gateway.
OQ’s strategy is also tied to a wider restructuring of Oman’s energy model. The group and its subsidiaries have signed five agreements and a memorandum of cooperation with the Integrated Gas Company to secure gas flows for industrial projects, Marsa LNG, OMIFCO, Marafiq and efficiency initiatives led by OQ Alternative Energy. These agreements cover upstream production, downstream supply, LNG bunkering, fertiliser feedstock and industrial utilities.
Marsa LNG gives the group exposure to a niche but strategically important segment: lower-emission marine fuel. The venture between TotalEnergies and OQ Exploration & Production is developing Oman’s first LNG bunkering project at Sohar Port, supported by feedstock from Block 10 and transport through the OQ Gas Networks system. The project is intended to help position Sohar as a regional centre for LNG bunkering and cleaner shipping fuels.
The financial context is equally important. Oman has used selective listings and infrastructure monetisation to broaden ownership of energy assets while retaining state control. OQ Gas Networks’ 2023 listing raised about $750 million through the sale of a 49 per cent stake, with OQ retaining 51 per cent and operational control. OQ Exploration and Production later became another major market transaction, reflecting a broader Gulf trend of recycling capital from mature infrastructure into new development priorities.
Renewables and low-carbon molecules remain part of the same investment narrative rather than a separate track. OQ Alternative Energy is tasked with advancing decarbonisation through energy efficiency, clean power and green hydrogen, with priority investments in renewables and hydrogen within Oman. The Ministry of Energy and Minerals has highlighted progress on Wind 1 and Wind 2, while OQ’s own growth-project portfolio includes North Oman Solar, Amin Riyah-1 Wind and Nimr West Riyah-2 Wind disclosures.
The projects under study include the Oman Petrochemical Complex, the Saih Nihayda natural gas liquids extraction project, the Nahada–Ras Markaz oil pipeline and expanded crude storage infrastructure at Ras Markaz, placing midstream and downstream assets at the centre of the group’s next growth phase. The programme follows more than $20 billion of investment in strategic assets spanning refining, polymers, ammonia, LPG, utilities, storage and trading operations.
OQ Group Chief Executive Officer Ashraf Hamed Al Mamari has framed the next investment cycle around growth activation, targeted financial returns, expansions and acquisitions. The focus is on moving beyond conventional production into integrated value chains where gas, condensates, crude logistics and petrochemical feedstocks can be processed, stored, exported or converted into higher-value products within Oman.
The Saih Nihayda NGL project is emerging as a pivotal component of this strategy. The proposed facility is designed to process gas and produce ethane, propane, butane and condensates, with associated pipelines and fractionation facilities linking upstream supply to downstream demand in Duqm. A gas supply term sheet signed with the Integrated Gas Company covers 48 million cubic metres of natural gas per day for 20 years, while a second phase provides for gas allocation to the planned Duqm Petrochemicals Complex, with potential ethane output of one million tonnes a year.
That project would deepen the industrial logic behind Duqm, where OQ has already anchored refining, storage, utilities and export capabilities. The Duqm Refinery, operated through OQ8 as a joint venture between OQ and Kuwait Petroleum International, has become one of Oman’s largest industrial assets, with investment exceeding $9 billion and processing capacity of 255,000 barrels per day. OQ has said its cumulative Duqm investments exceed $10 billion across refining, petrochemicals, storage and export facilities.
Ras Markaz is central to the logistics component of the plan. The crude storage terminal, operated by Oman Tank Terminal Company, is positioned outside the Strait of Hormuz and linked to the Duqm refinery by pipeline. OQ’s published project information describes the terminal as a strategic asset for crude handling, while its Duqm update cited partnerships with Royal Vopak and Iraq’s State Oil Marketing Organization to strengthen storage and export capabilities.
The proposed Nahada–Ras Markaz pipeline would add another layer to Oman’s crude logistics network by linking the Main Oil Line in central Oman with the Ras Markaz storage hub near Al Duqm. The route, estimated at about 360 to 440 kilometres, would provide greater flexibility for crude movement, blending, storage and export, while reducing reliance on older routes and reinforcing Duqm’s role as an energy gateway.
OQ’s strategy is also tied to a wider restructuring of Oman’s energy model. The group and its subsidiaries have signed five agreements and a memorandum of cooperation with the Integrated Gas Company to secure gas flows for industrial projects, Marsa LNG, OMIFCO, Marafiq and efficiency initiatives led by OQ Alternative Energy. These agreements cover upstream production, downstream supply, LNG bunkering, fertiliser feedstock and industrial utilities.
Marsa LNG gives the group exposure to a niche but strategically important segment: lower-emission marine fuel. The venture between TotalEnergies and OQ Exploration & Production is developing Oman’s first LNG bunkering project at Sohar Port, supported by feedstock from Block 10 and transport through the OQ Gas Networks system. The project is intended to help position Sohar as a regional centre for LNG bunkering and cleaner shipping fuels.
The financial context is equally important. Oman has used selective listings and infrastructure monetisation to broaden ownership of energy assets while retaining state control. OQ Gas Networks’ 2023 listing raised about $750 million through the sale of a 49 per cent stake, with OQ retaining 51 per cent and operational control. OQ Exploration and Production later became another major market transaction, reflecting a broader Gulf trend of recycling capital from mature infrastructure into new development priorities.
Renewables and low-carbon molecules remain part of the same investment narrative rather than a separate track. OQ Alternative Energy is tasked with advancing decarbonisation through energy efficiency, clean power and green hydrogen, with priority investments in renewables and hydrogen within Oman. The Ministry of Energy and Minerals has highlighted progress on Wind 1 and Wind 2, while OQ’s own growth-project portfolio includes North Oman Solar, Amin Riyah-1 Wind and Nimr West Riyah-2 Wind disclosures.
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Oman