MUSCAT: Building on its vision to support the development of low-carbon energy infrastructure in the Sultanate of Oman, OQ Gas Networks (OQGN) – the newly listed gas transportation company – has announced the signing of a Memorandum of Understanding (MoU) with Belgian-based energy infrastructure group Fluxys to explore cooperation in the establishment of hydrogen and carbon dioxide (CO2) infrastructure projects in Oman.
The partnership agreement was signed on Tuesday, October 24, 2023, by Mansoor al Abdali, Managing Director of OQGN with Pascal De Buck, CEO and MD of Fluxys.
“Powering Oman’s green future, OQGN and Fluxys unite for hydrogen and CO2 projects in Oman,” said OQGN in a post. “The agreement underlines OQGN’s dedication to fostering renewable energy and decarbonisation infrastructure in Oman.”
Fluxys added: “Fluxys and OQGN are both frontrunners in decarbonisation projects and they share the same key strategic focus on accelerating the energy transition. OQGN is committed to the development to renewable energy and decarbonisation infrastructure in Oman, supporting the country to swiftly become a renewable hydrogen export hub.
Fluxys is committed to connecting new low-carbon energy sources into Europe. Fluxys and OQGN can leverage on an impressive, combined expertise in an array of key domains driving the infrastructure business in the energy transition,” it stated.
Significantly, Brussels-headquartered Fluxys is also an Anchor Investment in OQGN, having recently acquired a 4.9% stake during OQGN’s landmark initial public offering of 49% of its share capital. It was one of three anchor investors that acquired minority stakes in the Omani gas network operator, the other two being Saudi Arabia’s Public Investment Fund (PIF), and the Qatar Investment Authority.
As the sole owner and operator of the country’s massive gas transportation network, spanning a total distance of over 4,000 km, OQGN says it is ideally positioned to emerge as the “partner-of-choice” in the rollout of hydrogen and CO2 pipeline networks as well. Such low-carbon infrastructure will be indispensable to Oman’s goal of transitioning towards a green-energy future, it has pointed out.
Underscoring this anticipated role for OQGN in Oman’s future green hydrogen economy, the company has signed an MoU with Hydrom, the nation’s hydrogen industry master-planner and orchestrator, to explore the development of a pipeline network to support the transportation and storage of green hydrogen from production sites to utilization and export hubs.
OQGN also foresees a role for itself in supporting CO2 capture and sequestration initiatives, which are key to reducing the carbon footprint of upstream operations, power and industrial sectors.
With the installation of dedicated pipelines, carbon captured from gas-fired power generation and traditional industrial processes, such as cement manufacturing, can be transported to depleted gas fields, for example, for reinjection and storage.
Fluxys is an independent energy infrastructure group with interests across parts of Europe and Latin America. The company specializes in the transport of natural gas, hydrogen, biomethane and other low-carbon energy carriers, as well as CO2.
Source: Oman Daily Observer
Date: 24 Oct 2023