OQ tapped to lead Oman’s oil and gas decarbonization efforts

OQ the decarbonization king? Oman’s state energy company OQ has been mandated by the country’s Energy and Minerals Ministry to help decarbonize oil and gas concessions and industrial clusters nationwide by supplying clean energy, the company said in its 2022 annual report (pdf). The mandate is part of the ministry’s efforts to push for decarbonization and carbon neutrality in the Gulf country.

How it will work: The energy company’s decarbonization plan was approved by its board in December 2022, with net zero roadmaps outlined for OQ’s existing operational assets in the country. The roadmaps identify opportunities in the four areas of energy excellence, clean energy, low carbon molecules, and negative emissions under efforts to decarbonize the assets and push OQ’s portfolio towards greener energy.

Already planning ahead: OQ says a plan is in the works to decarbonize its upstream and downstream assets by swapping a share of their power from polluting energy sources to renewables. These include the Liwa Solar and Block 60 solar projects, which are currently being studied, the company said.

Decarbonize all the things: OQ’s commodity trading subsidiary OQ Trading (OQT) signed an agreement in November with state-owned solid waste management firm Oman Environmental Service Holding Company (Be’ah) to reduce greenhouse gas emissions in Oman’s waste management industry. The agreement creates a framework for the two organizations to design and develop decarbonization projects in waste management and waste-to-energy.

Speaking of clean energy: OQ is working to help the Omani government build what it described as a hydrogen-centric economy by 2040, according to the report. It has some USD 40 bn worth of investments with partners in the pipeline for extensive green hydrogen projects that could generate over 30 GW of renewable energy in the country. The projects include Hyport Duqm, H2Oman, SalalaH2, and Green Energy Oman, OQ said, adding that it expects the projects to pass the final investment decision over the next decade.