OQ Gas Networks SAOG (OQGN), the exclusive owner and operator of Oman’s natural gas transmission network, announced the signing of a Term Sheet Cooperation Agreement with Fluxys, the Belgian based global energy infrastructure group, to jointly develop the hydrogen transportation infrastructure in the Sultanate of Oman, where Fluxys intends to own and operate the hydrogen network as a minority shareholder, alongside OQGN.
OQGN and Fluxys share similar vision in leading energy transition activities, and with complementary infrastructure and aspirations, they say they are well positioned to enable rapid and efficient development of hydrogen infrastructure to cater to Oman’s need in line with Oman’s vision 2040 and hydrogen production targets.
This Cooperation Agreement solidifies the partnership between Fluxys and OQGN following the signing in September 2023 of a Memorandum of Understanding (MOU) between the two organisations to strategically collaborate in the hydrogen and CO2 network developments in Oman, as well as Fluxys’ acquisition of a 4.9% stake in OQGN as an anchor investor as part of the Initial Public Offering (IPO) of OQGN.
The partnership highlights OQGN’s commitment in enabling the timely development of decarbonisation infrastructure in Oman, as well as Fluxys’ strategy in investing in new low-carbon energy value chains with high renewable potential countries and connecting them to Belgium and Europe. This partnership also reflects their intention to exchange knowledge derived from their experiences and prior learnings.
The agreement was signed by Eng. Mansoor bin Ali Al Abdali, CEO of OQGN, and Mr. Pascal De Buck, Managing Director and CEO of Fluxys, at a ceremony held at the Mandarin Oriental Hotel, Muscat. The event was held under the patronage of H.E. Salim bin Nasser Al Aufi, Minister of Energy and Minerals.
Commenting on the agreement, Eng. Mansoor bin Ali Al Abdali stated: “We are very excited to work with Fluxys in jointly developing the hydrogen transportation network in Oman, and supporting Oman’s green hydrogen and decarbonisation initiatives. This cooperation is a clear signal of our commitment as the national energy infrastructure company in leading the development and deployment of green hydrogen infrastructure to support Oman’s energy transition goals and aspirations. Together with Fluxys, we will leverage our considerable joint experience and capabilities meeting Oman’s requirements for hydrogen transport infrastructure and realising the national agenda in a cost-effective manner.”
Mr. Pascal De Buck added: “We are delighted to partner with OQGN in developing a new hydrogen transportation network in Oman. As a shareholder of OQGN, this collaboration is a pivotal step in our strategy to accelerating the energy transition and creating new value chains. By harnessing our combined expertise, we aim to bring renewable hydrogen to Belgium and Europe, while also significantly contributing to Oman’s sustainable energy goals. Together, we are committed to creating a brighter, greener energy future.”
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