Oman’s natural gas transportation network operator, OQ Gas Networks (OQGN), on Tuesday signed a major agreement to acquire a critical gas transportation pipeline in Block 61 for nearly 40 million Omani Rials ($104 million).

Block 61 is known for hosting crucial gas fields, such as Khazzan and Ghazeer gas fields, supplying about 1.5 billion cubic feet per day (bcf/d), enough to cover 35% of Oman’s domestic gas demands. 

The company formalized the acquisition by signing an Asset Transfer Agreement with the Ministry of Energy and Minerals and the Ministry of Finance. 

According to a disclosure filed with the Muscat Stock Exchange, the deal, valued at RO39.991 million ($104 million), was formalised by signing an Asset Transfer Agreement with the Ministry of Energy and Minerals and the Ministry of Finance.

The deal effectively transfers ownership of the 36-inch Ghazeer Phase-2 gas transportation pipeline to OQGN. The newly acquired infrastructure, which spans 65 kilometers, will be integrated into OQGN’s Regulated Asset Base (RAB). 

According to OQGN, the acquisition is a strategic move designed to further consolidate national gas transportation assets and supports its goal of leading energy infrastructure development across the sultanate.

OQGN maintains a natural monopoly over Oman’s essential gas transmission infrastructure, operating more than 4,000 kilometers of pipeline network. The company's mission is to manage and develop the National Gas Transmission Network (NGTN) using innovative and sustainable solutions.

OQGN’s extensive network is vital to the Omani economy, supplying natural gas to a diverse array of major industries, including power generation, water desalination, and manufacturing sectors such as cement, aluminum, fertilizer, and petrochemical plants. 

This latest acquisition strengthens OQGN’s ability to ensure reliable energy delivery to these critical consumers.