JUNE 5, 2023

OQGN signs MoU with Hydrom on green hydrogen

OQ Gas Networks (OQGN), the sole transporter of natural gas in the Sultanate of Oman and owner of the natural gas transportation network, has signed a memorandum of understanding (MoU) with Hydrogen Oman (Hydrom), to study the development of green hydrogen network infrastructure in the Sultanate.

This partnership establishes a strong collaboration and is the first step towards the development of an optimal, efficient, and cost-effective solution for green hydrogen transportation in Oman. OQGN will leverage on its expertise and capabilities to provide shared infrastructure plans allowing green hydrogen developers to capitalize on the substantial technical and economical synergies and benefits of a shared infrastructure.

OQGN is well placed to be at the center of the development of green hydrogen network initiatives. The company will help explore the best options for the development and construction of green hydrogen pipeline network infrastructure to transport green hydrogen from Hydrom’s renewables and clean hydrogen blocks to the downstream plants at the special economic zones and ports, as well as linking the network across governorates and explore potential interconnection with neighboring countries – as part of Hydrom’s master plan.

Further, the partnership will help to facilitate study outcomes, which will enable local company talents to develop optimal, efficient, and cost-effective solutions for green hydrogen transportation in Oman, advancing the green hydrogen economy and attracting international investments.

The agreement was formalized as part of OQGN’s efforts to drive clean energy initiatives and is a direct reflection of OQGN’s deep commitment to developing clean energy infrastructure, as well as an acknowledgment of OQGN’s capabilities and expertise by key stakeholders in the hydrogen ecosystem.

Mansoor Ali al Abdali, Managing Director, OQGN, commented: “OQGN’s core focus is on clean energy infrastructure. This MoU reflects both the importance of green hydrogen for the Sultanate of Oman and our intention to play a leading role in green hydrogen transportation. We are delighted to be formalizing our relationship with Hydrom, which has already achieved a great deal in its first year of existence.”

Dr Firas Ali al Abduwani, Acting Managing Director at Hydrom, added: “The huge potential and rich natural resources for green hydrogen in Oman can only truly be captured through the development of robust and reliable infrastructure. We are therefore delighted to be signing this MoU with OQGN. We are confident there are many other similar opportunities that we are hoping to explorewith other national and international infrastructure providers, which will benefit the green hydrogen developers by providing a reliable cornerstones, supporting Hydrom’s vision of creating a green hydrogen hub in The Sultanate of Oman.”

It is worth mentioning that Hydrom was established in 2022 and is the entity orchestrating the national interest in green hydrogen, which includes operating competitive auction process for lands to be allocated for green hydrogen projects and orchestrating and master planning the Common Use Infrastructure, which includes hydrogen networks. Its inception followed His Majesty Haitham bin Tarik's directive to structure and accelerate the development of the green hydrogen sector in Oman. Hydrom is fully owned by Energy Development Oman (EDO) and is regulated by the Ministry of Energy and Minerals (MEM).

Source: https://www.omanobserver.om/article/1138254/business/energy/oqgn-signs-mou-with-hydrom-on-green-hydrogen