Thursday 25 / June / 2026
Muscat--- The Integrated Gas Company (IGC) signed today a new set of spot gas market agreements, in a step that enhances the flexibility of the national gas ecosystem and raises the efficiency of resource allocation. This move aims to support industrial growth, advance sustainability, and maximize the economic value of natural gas in the Sultanate of Oman.
The signing ceremony was held under the auspices of Qais Mohammed Al Yousef, Chairman of the Public Authority for Special Economic Zones and Free Zones (OPAZ), in the presence of a number of officials, representatives of government entities and the private sector, as well as gas producers and consumers.
The signing of these agreements comes as an extension of the successes achieved by the spot gas market since its launch in mid-2024. It has contributed to developing more flexible and efficient mechanisms for allocating natural gas through competitive bidding and direct agreements, which enhances transparency and ensures the optimal use of national resources.
The Integrated Gas Company affirmed that the spot gas market has become a strategic tool for supporting the industrial sector, enabling projects to obtain additional or temporary quantities of gas according to their operational and expansion needs. This contributes to production continuity, attracts new investments, and enhances the competitiveness of the industrial sector in the Sultanate of Oman.
Furthermore, the spot market has contributed to enhancing the national gas ecosystem's capacity to manage the balance between supply and demand. By directing available quantities to uses with higher economic value at the appropriate time, it raises the efficiency of utilizing national resources and enhances the economic returns generated from natural gas.
On the sustainability front, this mechanism has helped provide a more efficient and lower-carbon alternative compared to the use of diesel fuel in some industrial and commercial facilities when additional energy is needed. This significantly supports efforts to reduce emissions and achieve net-zero carbon targets in the Sultanate of Oman.
The spot market has also contributed to maximizing revenues generated from natural gas by providing flexible marketing channels that respond to market variables and the needs of various economic sectors. During the past year, Integrated Gas Company collaborated with Nama Power and Water Procurement Company to provide additional quantities of gas for electricity production, supporting the export of electricity through the Gulf grid and ensuring the optimal utilization of national resources.
Abdulrahman Hamid Al Yahyaei, Chief Executive Officer of Integrated Gas Company, stated that the spot gas market represents one of the most important tools developed by the company to enhance the flexibility of the gas market in the Sultanate of Oman and raise the efficiency of national resource allocation. He noted that recent experience has proven that the existence of a flexible and transparent gas market not only contributes to meeting the operational needs of consumers but also provides new opportunities for industrial growth, enhances investment attractiveness, and supports the Sultanate of Oman's ability to achieve the highest possible economic value from its natural resources.
He added in his speech that the company continues to work on developing market tools and allocation mechanisms to keep pace with future changes in gas demand, enhance the security of supplies, and support the targets of Oman Vision 2040 regarding economic diversification and industrial sustainability. The company also seeks to build a more flexible and efficient ecosystem capable of responding rapidly to the needs of various economic sectors and achieving sustainable value for the national economy and future generations.
Al Yahyaei pointed out that natural gas undertakes a pivotal role in supporting the national economy, as it contributes to the production of approximately 95 percent of electricity and water in the Sultanate of Oman. It also directly supplies more than 150 industrial and commercial facilities, making it a fundamental pillar for economic growth, industrial diversification, and the enhancement of local added value.
Al Yahyaei affirmed that Integrated Gas Company remains committed to continuing the development of market tools and enhancing the levels of transparency, flexibility, and efficiency. This steadfast commitment supports the objectives of Oman Vision 2040, raises the competitiveness of the industrial sector, and ensures the optimal utilization of natural gas resources in a manner that achieves sustainable value for the national economy and future generations.
