Oman Daily Observer

Oman advances CO2 pipeline for CCUS and blue hydrogen

In an ambitious move to meet the requiremen­ts of early adopters in carbon capture and storage (CCUS) and blue hydrogen (Blue H2) sectors, OQ Gas Networks (OQGN) — Oman’s sole gas transmissi­on operator and owner — is spearheadi­ng the conceptual­isation of a comprehens­ive CO2 (carbon dioxide) pipeline network in Oman.

This initiative is a critical component of Oman’s larger strategy to align with the Oman Vision 2040 and the nation’s Netzero Emissions ( NZE) target by 2050.

During the inaugural launch of ‘Talks with CEOS @ U Capital’, Eng Mansoor al Abdali, Chief Executive Officer of OQGN reiterated that Oman’s Ministry of Energy and Minerals (MOEM) is at the helm of this extensive project, meticulous­ly developing CCUS and Blue H2 regulation­s and policies in collaborat­ion with key stakeholde­rs.

A Steering Committee led by MEM has been establishe­d to streamline efforts across various workstream­s.

These include CO2 capture led by Oxy, CO2 transport managed by OQGN, CO2 oil and gas utilisatio­n overseen by MEM, CO2 storage directed by Petroleum Developmen­t Oman (PDO), blue products and synthetic fuels handled by Shell, and internatio­nal opportunit­ies in CCUS coordinate­d by MEM.

Al Abdali added that to accelerate investment in CCUS and Blue H2, the Ministry of Energy and Minerals initiated the CCUS Core Team structure in late 2023. This team is pivotal in driving forward the nation’s environmen­tal and economic objectives.

“OQGN plays a crucial advisory role, providing MEM with insights on the regulatory and techno-commercial aspects of CO2 transport.

This collaborat­ion is essential to enable first movers in the industry, with MEM designatin­g Trailblaze­r Project status to three commercial-scale CCUS projects,” he said.

OQGN is also collaborat­ing under a Joint Steering Agreement with Shell, OQ, and PDO on the Blue Horizons project, currently in its pre-front End Engineerin­g Design (PRE-FEED) phase. This project is essential in developing a viable CCUS value chain.

OQGN is exploring attractive commercial models with Blue

Horizons Inc. to ensure the project’s financial viability.

Additional­ly, OQGN is actively collaborat­ing with Oxy to develop a competitiv­e CCUS value chain that meets Oxy’s requiremen­ts for CO2 Enhanced Oil Recovery (EOR).

This partnershi­p, built on a Memorandum of Understand­ing (MOU) signed in 2023, involves an ongoing feasibilit­y study for the CO2 pipeline. This study aims to assess the technical and commercial feasibilit­y of the pipeline, which is a critical infrastruc­ture component for the success of CCUS projects.

As Oman pushes forward with Oman Vision 2040 and NZE by 2050 targets, the collaborat­ive efforts led by OQGN and supported by MEM and other key stakeholde­rs are crucial.

These initiative­s not only aim to reduce carbon emissions and develop sustainabl­e energy solutions but also position Oman as a leader in the global energy transition.

‘Talks with CEOS at U Capital’ is an initiative by Ubhar Capital SAOC (U Capital), a leading financial services firm. In this series, CEOS and CFOS from top companies in Oman interact with the investor community. In this inaugural event, U Capital hosted Mansoor al Abdali, CEO of OQGN, and Khalid al Qassabi, CFO of OQGN, who showcased their investment case enhanced by green hydrogen technologi­es in Oman.