Latest news with #MinistryofEnergyandMinerals
Zawya
18 hours ago
- Business
- Zawya
Oman's clean energy transformation is no longer a distant goal
From the desert interiors of Ibri to the coastal winds of Dhofar, Oman's energy future is shifting dramatically. The Ministry of Energy and Minerals' Annual Report 2024 outlines a bold transition: the establishment of seven dedicated Renewable Energy Zones across Dhofar, Duqm, Al-Ghazir, Manah, Ibri, Sur, and Musandam. These zones are not just strategic points on a map—they represent a national commitment to sustainability, economic diversification, and energy security. With long-term targets to generate 30% of electricity from renewable sources by 2030, Oman is investing heavily in solar and wind power. Utility-scale solar farms in Manah and Ibri are already under development, and the expansion of wind energy projects in Dhofar and Duqm is underway. These zones were selected for their geographic strengths—solar intensity, wind potential, and access to existing infrastructure—making them ideal for large-scale clean energy deployment. Yet Oman's ambitions go further. The report highlights the country's emerging role as a green hydrogen leader. Backed by abundant land and renewables, Oman aims to produce one million tonnes of renewable hydrogen annually by 2030, ramping up to 3.75 million tonnes by 2040 and 8.5 million tonnes by 2050. These targets would position Oman as the largest hydrogen exporter in the Middle East and among the top globally. To enable this, Oman has allocated approximately 50,000 square kilometers of land for hydrogen development—an area equivalent to the size of Slovakia. Through the government-backed entity Hydrom, a total of eight project agreements have been signed to date. These integrated projects combine solar, wind, desalinated water, and hydrogen production infrastructure, all focused on export readiness. Oman's strategy centers around green ammonia as the primary carrier for hydrogen exports. With existing port infrastructure and planned upgrades in Salalah, Duqm, and Sur, the country is well-positioned to deliver competitively priced ammonia to global markets. By 2030, Oman's hydrogen production costs are projected to fall to around $1.60 per kilogram, supported by some of the world's lowest renewable energy prices—between $25 and $35 per megawatt-hour. The economic outlook is equally compelling. The clean hydrogen economy could bring in $33 billion in investments by 2030, while generating an estimated $2 billion in annual revenues from exports. Domestically, switching from fossil-based hydrogen to renewable hydrogen in refineries and industry could cut CO₂ emissions by more than 7 million tonnes annually—roughly 7% of Oman's 2021 baseline—and save over 3 billion cubic meters of natural gas each year. These developments are part of a broader vision aligned with Oman Vision 2040. The government is also advancing regulatory frameworks, land auctions, and international certification to ensure credibility and competitiveness in emerging green markets. In parallel, Oman is exploring domestic hydrogen use in steelmaking and high-temperature industrial processes, setting the stage for low-carbon manufacturing clusters in the future. While the global hydrogen market remains in its infancy, Oman's proactive approach—coupled with its geographic, economic, and political advantages—makes it a serious contender in the race toward a net-zero future. The Annual Report 2024 paints a picture not just of aspirations, but of measurable progress, real partnerships, and structural reform. Oman's clean energy transformation is no longer a distant goal. It is an evolving national strategy, already underway—anchored in data, powered by sunlight and wind, and steadily redefining the country's place in the global energy landscape. 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
Observer
18 hours ago
- Business
- Observer
Oman-China strategic partnership a model in the region
The Oman-China strategic partnership has yielded fruitful results in pragmatic cooperation in all areas and the two sides have been strengthening each other in a broader spectrum of areas, according to Brigadier Wu Xinyan, the Chinese Defence Attaché. Speaking on the sidelines of the 98th Anniversary of the Founding of the Chinese People's Liberation Army, he said that the strategic relationship has stretched over various sectors covering oil and gas as well. 'The long-lasting strategic relations have been stretched over economic investments in oil, electricity, minerals and renewable energy which serve the common interests of both sides and realise the common development goals of the two countries,' he said. The bilateral military relations are an important part of the strategic relationship between the two countries and the two sides have been strengthening military friendly cooperation in various fields, and have made comprehensive progress in military training, high-level mutual visits, exchange of experience, and joint exercises and training in the recent past. 'We also look forward to the deepening of cooperation between the two sides in the military and security fields, which will benefit both countries and contribute to regional peace and stability,' he added. The Chinese People's Liberation Army has played a crucial role in China's national unification and has safeguarded its peace and stability for nearly 100 years. This occasion holds historical significance and reflects the deep traditional and friendly relations between Oman and China. 'While we celebrate and commemorate the glorious journey of the Chinese People's Liberation Army, we also take this occasion to emphasise China's long-standing friendship with Oman, which has spanned over a thousand years and has been strengthened and deepened in recent years, marked by remarkable achievements.' 'We firmly believe that the continuous expansion of cooperation in various fields and the opening up of broader prospects for cooperation between the two sides will achieve our respective and common goals,' he added. Firas al Abduwani, Director-General of Renewable Energy and Hydrogen, Ministry of Energy and Minerals, Saleh al Anboori, Director-General of Exploration and Production of Oil and Gas, Ministry of Energy and Minerals, and Mohammed al Najjar, Director-General of the General Directorate of Training, Ministry of Labour, were also present at the event.
Zawya
3 days ago
- Business
- Zawya
OQ projects to boost Oman's fuel storage
Major investments by Oman's OQ in fuel storage infrastructure are poised to strengthen its pivotal role in strategic fuel logistics, the Ministry of Energy and Minerals said. Last year, the state-owned energy company – part of the Oman Investment Authority (OIA) – commenced work on two key fuel storage hubs located in strategically important regions of the Sultanate, committing a total investment of $328 million to the projects. The larger of the two hubs is under construction in Musandam Governorate, with a budget of $204 million. Work on the 14,536-cubic-metre capacity facility began in October 2024. Underscoring the importance of the project, the Ministry said in a report: 'The Strategic Fuel Reserve is part of the Group's commitment to sustainable economic development and to addressing the rising demand for petroleum products driven by population growth and increased commercial activities.' It added:' The storage facility will serve as a strategic reserve for various fuels, including gasoline and aviation fuel, ensuring an uninterrupted supply during emergencies.' In August 2024, OQ broke ground on a separate Strategic Fuel Reserve located in Dhofar Governorate, in the far south of the Sultanate. The facility, with a planned capacity of 110,000 cubic metres, will enhance the governorate's resilience to potential energy disruptions, the Ministry said. 'The project aims to strengthen the local fuel supply in Dhofar and ensure preparedness for emergency situations by storing key petroleum derivatives,' it added. When fully operational—targeted for early 2027—the two hubs will significantly boost Oman's strategic fuel reserve capacity, which is currently overseen entirely by OQ Group subsidiaries. They will complement the central national fuel storage terminal operated by wholly owned OQ Logistics at Al Jifnain, just outside the capital, Muscat. With a capacity of approximately 170,000 cubic metres, the Jifnain terminal is the largest fuel storage facility in Oman, meeting over 70 per cent of the nation's refined fuel consumption. It is supplied via pipelines connected to OQ's refineries at Mina Al Fahal (Muscat) and Suhar, as well as to Muscat International Airport. Another vital component of Oman's fuel storage ecosystem is the Ras Markaz Crude Oil Terminal, located near Duqm and overseen by Oman Tank Terminal Company (OTTCO). Connected to the Duqm Refinery via an 80 km pipeline, the terminal functions both as a regional crude storage facility and an export terminal. (Writing by Nadim Kawach; Editing by Anoop Menon)
Zawya
6 days ago
- Business
- Zawya
OQ investments boost Oman's fuel storage capacity
The new storage hubs will boost Oman's resilience to supply crises primarily during weather-related emergencies Major investments by OQ – the integrated energy group of Oman – in the country's fuel storage infrastructure are poised to strengthen its pivotal role in strategic fuel logistics, according to the Ministry of Energy and Minerals. Last year, the state-owned energy company – part of the Oman Investment Authority (OIA) – commenced work on two key fuel storage hubs located in strategically important regions of the Sultanate, committing a total investment of $328 million to the projects. The larger of the two hubs is under construction in Musandam Governorate, with a budget of $204 million. Work on the 14,536-cubic-metre capacity facility began in October 2024. Underscoring the importance of the project, the Ministry stated: 'The Strategic Fuel Reserve is part of the Group's commitment to sustainable economic development and to addressing the rising demand for petroleum products driven by population growth and increased commercial activities. The storage facility will serve as a strategic reserve for various fuels, including gasoline and aviation fuel, ensuring an uninterrupted supply during emergencies,' the Ministry added in its recently published 2024 Annual Report. Earlier, in August 2024, OQ broke ground on a separate Strategic Fuel Reserve located in Dhofar Governorate, in the far south of the Sultanate. The facility, with a planned capacity of 110,000 cubic metres, will enhance the governorate's resilience to potential energy disruptions, the Ministry said. 'The project aims to strengthen the local fuel supply in Dhofar and ensure preparedness for emergency situations by storing key petroleum derivatives,' it added. When fully operational—targeted for around April 2027—the two hubs will significantly boost Oman's strategic fuel reserve capacity, which is currently overseen entirely by OQ Group subsidiaries. They will complement the central national fuel storage terminal operated by wholly owned OQ Logistics at Al Jifnain, just outside the capital, Muscat. With a capacity of approximately 170,000 cubic metres, the Jifnain terminal is the largest fuel storage facility in Oman, meeting over 70 per cent of the nation's refined fuel consumption. It is supplied via pipelines connected to OQ's refineries at Mina Al Fahal (Muscat) and Suhar, as well as to Muscat International Airport. Another vital component of Oman's fuel storage ecosystem is the Ras Markaz Crude Oil Terminal, located near Duqm and overseen by Oman Tank Terminal Company (OTTCO). Connected to the Duqm Refinery via an 80 km pipeline, the terminal functions both as a regional crude storage facility and an export terminal. Since commencing operations just over two years ago, Ras Markaz has handled 491 vessels as of the end of April 2025. In this period, it imported over 950 million barrels of crude oil and exported approximately 17 million metric tonnes of petroleum products. Earlier this year, OTTCO signed a strategic partnership with Royal Vopak, the leading Dutch fuel logistics company, aimed at transforming Duqm into a global hub for storage services. The company is also exploring opportunities to support the development of advanced infrastructure for the storage, handling, and export of green ammonia. 2022 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (
Observer
6 days ago
- Business
- Observer
OQ investments boost Oman's fuel storage capacity
Major investments by OQ – the integrated energy group of Oman – in the country's fuel storage infrastructure are poised to strengthen its pivotal role in strategic fuel logistics, according to the Ministry of Energy and Minerals. Last year, the state-owned energy company – part of the Oman Investment Authority (OIA) – commenced work on two key fuel storage hubs located in strategically important regions of the Sultanate, committing a total investment of $328 million to the projects. The larger of the two hubs is under construction in Musandam Governorate, with a budget of $204 million. Work on the 14,536-cubic-metre capacity facility began in October 2024. Underscoring the importance of the project, the Ministry stated: 'The Strategic Fuel Reserve is part of the Group's commitment to sustainable economic development and to addressing the rising demand for petroleum products driven by population growth and increased commercial activities. The storage facility will serve as a strategic reserve for various fuels, including gasoline and aviation fuel, ensuring an uninterrupted supply during emergencies,' the Ministry added in its recently published 2024 Annual Report. Earlier, in August 2024, OQ broke ground on a separate Strategic Fuel Reserve located in Dhofar Governorate, in the far south of the Sultanate. The facility, with a planned capacity of 110,000 cubic metres, will enhance the governorate's resilience to potential energy disruptions, the Ministry said. 'The project aims to strengthen the local fuel supply in Dhofar and ensure preparedness for emergency situations by storing key petroleum derivatives,' it added. When fully operational—targeted for around April 2027—the two hubs will significantly boost Oman's strategic fuel reserve capacity, which is currently overseen entirely by OQ Group subsidiaries. They will complement the central national fuel storage terminal operated by wholly owned OQ Logistics at Al Jifnain, just outside the capital, Muscat. With a capacity of approximately 170,000 cubic metres, the Jifnain terminal is the largest fuel storage facility in Oman, meeting over 70 per cent of the nation's refined fuel consumption. It is supplied via pipelines connected to OQ's refineries at Mina Al Fahal (Muscat) and Suhar, as well as to Muscat International Airport. Another vital component of Oman's fuel storage ecosystem is the Ras Markaz Crude Oil Terminal, located near Duqm and overseen by Oman Tank Terminal Company (OTTCO). Connected to the Duqm Refinery via an 80 km pipeline, the terminal functions both as a regional crude storage facility and an export terminal. Since commencing operations just over two years ago, Ras Markaz has handled 491 vessels as of the end of April 2025. In this period, it imported over 950 million barrels of crude oil and exported approximately 17 million metric tonnes of petroleum products. Earlier this year, OTTCO signed a strategic partnership with Royal Vopak, the leading Dutch fuel logistics company, aimed at transforming Duqm into a global hub for storage services. The company is also exploring opportunities to support the development of advanced infrastructure for the storage, handling, and export of green ammonia.
