Muscat: The total quantity of gas managed by the Integrated Gas Company on a daily basis amounted to 120 million cubic metres, of which 7 million cubic metres were imported through the Dolphin Project, according to a senior executive of the company.
“These quantity of gas are supplied daily by the company to the industrial, electricity, oil extraction, and export sectors,” said Abdulrahman bin Humaid Al Yahyaei, CEO of Integrated Gas Company.
Integrated Gas Company (IGC) is the national entity responsible for managing all allocations, assets, rights and obligations related to the purchase, sale, import, export and transportation of natural gas and related products on behalf of the Government of the Sultanate of Oman.
He further elaborated that that the national gas network in the Sultanate of Oman is the longest pipeline network in the Middle East, extending over 4,200 kilometres. He said that the company currently has 130 gas sales contracts ranging in duration from 10 to 15 years to deliver gas to companies and factories.
He further added that that approximately 48 million cubic metres of gas per day, representing approximately 40 percent of the total gas quantities available to the company, are allocated to Oman LNG for export as liquefied natural gas (LNG). Approximately 25 million cubic metres per day are allocated to power generation companies, and approximately 11 million cubic metres per day are allocated to crude oil production operations within the concession areas, while the remainder is directed to meet the needs of the industrial sector.
The CEO of Integrated Gas Company added that the National Gas Allocation Strategy, approved by the Finance and Economic Committee of the Cabinet, sets criteria for gas allocation, the percentage of contribution to the gross domestic product, Omanisation rates, the transition to clean energy, and the development of industries aligned with gas-based projects.
He pointed out that the size of the gas sector in the Sultanate of Oman exceeds $8 billion, including the purchase, transportation, distribution, and sale of gas to all companies and industrial projects. He explained that the overall contribution of gas to the Sultanate of Oman's GDP amounts to 19 percent.
The CEO of Integrated Gas Company confirmed that all contracts concluded with companies are bound by Omanisation rates, with the average Omanisation rate at these companies reaching 40 percent.
He further noted that, starting in 2024, the system for gas contracts concluded with companies and factories will be changed, with Integrated Gas Company selling gas quantities according to a specific mechanism set by the government.