MUSCAT, JUNE 14
Oman’s natural gas market is entering a more complex phase of structurally rising demand, even as supply growth remains comparatively constrained, according to Integrated Gas Company (IGC), which continues to play a central role in balancing allocations across power generation, industry, and strategic economic projects.
Speaking on the evolving gas landscape, CEO Abdulrahman al Yahyaei said that while the Sultanate of Oman’s gas balance remains secure, managing future demand growth is becoming increasingly complex amid accelerating consumption from industrial expansion, petrochemicals, urban development, and emerging sectors.
“The gas balance remains secure, although managing future demand growth is becoming increasingly complex,” he said, adding that demand is now being shaped not only by traditional users but also by the broader economic transformation agenda, requiring allocation decisions to focus on where gas creates the highest national value while maintaining reliability, affordability, and long-term supply security.
According to Al Yahyaei, gas demand trends over the past three years have reflected strong industrial and petrochemical growth, alongside seasonal fluctuations in power generation driven by cooling demand.
“The power sector continues to be one of the largest variable consumers due to cooling demand. At the same time, we have seen significant year-on-year increases driven by large industrial projects, while industrial users are becoming more diverse across steel, cement, chemicals, food processing, manufacturing, and downstream sectors. We are also seeing stronger demand signals from emerging sectors, including potential future demand from data centres, digital infrastructure, and low-carbon industrial projects.”
Demand growth is increasing faster than domestic supply growth; however, Oman continues to maintain a secure gas balance through effective planning, infrastructure development, and close coordination with producers.
“IGC is optimising the national gas system through better forecasting, improved allocation governance, contractual discipline, take-or-pay structures, network debottlenecking, coordination with the Ministry of Energy and Minerals and producers, and the prioritisation of high-value domestic use,” Al Yahyaei said.
In parallel, IGC continues to work closely with the Ministry of Energy and Minerals, upstream producers, and infrastructure partners to unlock new gas supplies, optimise existing resources, improve infrastructure utilisation, and support long-term energy security. This includes evaluating new domestic gas developments, enhancing network efficiency, and exploring innovative solutions that strengthen the resilience and flexibility of Oman’s energy system.
Looking ahead, IGC expects sustained growth in gas demand over the next two to three years, driven by major industrial and infrastructure developments.
“We expect gas demand to continue growing, mainly from industrial projects, infrastructure expansion, petrochemicals, steel, cement, manufacturing, mining, and power demand,” he said, noting that the key challenge lies not only in volumes but also in the timing, location, and flexibility of supply arrangements.
At the same time, IGC has begun assessing gas demand growth in Al Buraimi, Al Dakhiliyah, Al Duqm, Suhar, Sur, Salalah, and other emerging industrial centres through structured demand planning undertaken in coordination with Madayn and OPAZ.
“We assess forecast volumes, project maturity, investment value, job creation, Omanisation, In-Country Value, network proximity, infrastructure requirements, and strategic alignment with Oman’s diversification priorities. This enables us to distinguish between mature, investment-ready projects and those at earlier stages of development.
IGC also evaluates the broader value generated by new demand and whether it contributes to developing new economic clusters, localising industries, introducing advanced technologies, enhancing self-sufficiency, and supporting Oman’s long-term sustainability objectives.”
Al Yahyaei emphasised that future allocation decisions will increasingly focus not only on the volume of gas required by a project, but also on the economic value generated per unit of gas consumed, including investment value, employment creation, Omanisation, export potential, technology transfer, supply chain development, and alignment with Oman Vision 2040 and Net Zero 2050 ambitions.
Large-scale energy-intensive projects, including low-carbon steel, petrochemicals, PTA-PET, mining, and downstream manufacturing hubs, are expected to significantly reshape long-term gas demand.
Abdulrahman al Yahyaei, CEO – IGC
“These projects could have a very significant combined impact on future gas demand,” he said, noting that IGC adopts multi-year and multi-decade planning horizons aligned with supply availability, infrastructure capacity, and Oman’s Net Zero 2050 pathway.
At the same time, future industrial growth will increasingly be assessed through the lens of energy efficiency, sustainability, and flexibility. Projects capable of integrating renewable energy, hydrogen, energy storage, carbon management solutions, and other low-carbon technologies will be better positioned to support Oman’s long-term energy transition while reducing future pressure on domestic gas demand.
Al Yahyaei also outlined a broader strategic vision for IGC. “My long-term vision is for IGC to evolve beyond its traditional role as a gas aggregator and allocator to become a strategic energy enabler and optimisation platform for Oman. IGC should leverage advanced analytics, artificial intelligence, digital twins, predictive modelling, and scenario planning capabilities to anticipate future supply and demand dynamics, visualise the evolution of industries and economic clusters, and support national decision-making with data-driven insights.
As Oman progresses toward Vision 2040 and Net Zero 2050, IGC’s role should expand to strengthening energy security, maximising the value of national gas resources, supporting industrial diversification, enabling decarbonisation pathways, and facilitating the integration of alternative energy sources including solar, wind, hydrogen, carbon capture, and energy storage solutions.”
Future gas allocation decisions should increasingly prioritise projects that generate the highest economic value, create quality employment opportunities, enhance Omanisation and In-Country Value, promote technology transfer, and demonstrate long-term flexibility to transition toward lower-carbon energy sources.
Ultimately, IGC should serve as a strategic partner in shaping Oman’s future energy ecosystem, balancing economic growth, industrial development, energy security, and environmental sustainability through intelligent planning, innovation, and responsible resource stewardship,” the CEO added.
State-owned IGC, a subsidiary of the Ministry of Finance, is the sole aggregator and shipper of natural gas in the Sultanate of Oman.
