Oman’s OQ Gas Networks targets completion of three gas pipeline projects by end of 2027 under OMR 294 million infrastructure program
Image generated with artificial intelligenceOQ Gas Networks, Oman’s sole operator of the national natural gas transmission network, is simultaneously building three gas pipeline projects — all scheduled for completion by the end of 2027. The company’s CEO and senior officers disclosed the details during a review of its first-half 2026 financial and operational performance. These projects fall under an $764 million capital expenditure program earmarked for infrastructure growth during the current Price Control period.
Three pipelines due by 2027 under $764 million program
The $764 million figure covers the full current Price Control period, and all three projects sit within that envelope. OQGN’s CEO, Eng. Mansoor Ali Al Abdali, led the H1 2026 performance review alongside Chief Business Development & Commercial Officer Eng. Saif Al Hosni and Acting CFO Sultan Al Balushi. Together, they laid out both the financial commitment and the operational rationale behind each project.
Running three major infrastructure builds concurrently is unusual for any gas network operator. It signals that demand across Oman is growing faster than the existing pipeline system can handle — and that OQGN is pushing hard to close that gap before 2027 is out.
Once all three projects are complete, that figure is expected to reach 2,931 miles — an addition of 217 miles, roughly an 8% increase in total network length.
Why the projects are being built: Industrial demand and network constraints
The clearest pressure point is in the north. Industrial activity in Suhar and Ibri has been expanding steadily, and the existing gas network in that region is struggling to keep pace. OQGN describes the situation as a bottleneck — supply is already constrained relative to what industry actually needs.
In the southeast, the story differs but the logic holds. The Port of Duqm has been attracting a growing cluster of gas-dependent industries, and without new pipeline capacity, that growth hits a ceiling. The Duqm Growth pipeline is designed to lift it.
The third project — the Budoor–Tayseer pipeline — addresses a more specific gap. A gas plant at Budoor Tayseer currently sits outside the national transmission network entirely. Connecting it adds both supply and flexibility to the wider system, which matters more than the project’s modest scale might suggest.
All three projects share the same underlying purpose: ensuring Oman’s key economic growth hubs have the gas supply they need to keep expanding.
Project details: Fahud–Sohar loop line, Budoor–Tayseer, and Duqm Growth pipeline
The Fahud–Sohar Loop Line is the biggest of the three by a wide margin. At 120 miles and 42 inches in diameter, it’ll run parallel to the existing Fahud–Suhar pipelines, starting from the Fahud Compressor Station and extending toward Suhar. Once operational, it’s expected to add around 11 MMSCMD of transmission capacity to the northern network — a substantial uplift for a region already under strain.
The Budoor–Tayseer pipeline is much shorter at 19 miles, and narrower at 14 inches. Its job is straightforward: connect the Budoor Tayseer Gas Plant to the national grid. The expected capacity addition is approximately 2 MMSCMD — smaller in absolute terms, but meaningful for the areas it’ll serve.
The Duqm Growth pipeline rounds out the three. At 8 miles and 32 inches in diameter, it’s the shortest of the group, though that wide bore is well-suited to high-volume delivery. It targets the Port of Duqm and the industrial cluster building up around it in southeast Oman.
Each project is geographically distinct and solves a different piece of the same puzzle — covering the north, a mid-network integration point, and the southeast, spreading new capacity across the country rather than concentrating it in one place.
Network expansion targets: Capacity and volume projections for 2027
The numbers behind these projects tell their own story. OQGN’s total pipeline network currently stands at 2,714 miles as of end-2025. Once all three projects are complete, that figure is expected to reach 2,931 miles — an addition of 217 miles, roughly an 8% increase in total network length.
Total network capacity is projected to climb from 2.69 trillion cubic feet in 2025 to 2.84 trillion cubic feet by 2027. Gas transportation volumes are forecast to follow a similar upward trajectory, rising from 1.50 trillion cubic feet to 1.66 trillion cubic feet over the same period — an increase of more than 11% in actual volumes moved through the system.
These aren’t marginal adjustments. They represent a genuine step-change in what Oman’s gas transmission infrastructure can handle.
As the country’s exclusive network operator, OQGN has no parallel grid to absorb the slack. If OQGN’s network can’t carry the gas, the gas doesn’t move. That monopoly position makes timely delivery of all three projects particularly important for Oman’s broader industrial and energy agenda.
Targeting completion by end of 2027
OQ Gas Networks is building three gas pipeline projects — the 120-mile Fahud–Sohar Loop Line, the 19-mile Budoor–Tayseer pipeline, and the 8-mile Duqm Growth pipeline — all targeting completion by end of 2027. The combined investment falls under an $764 million capital expenditure program tied to the current Price Control period.
The projects are driven by bottlenecks and rising demand in Suhar, Ibri, and the Duqm industrial zone, as well as the need to integrate the Budoor Tayseer Gas Plant into the national network.
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