Oman's IGC Launches Auction for Compressed Natural Gas Projects
Oman's Integrated Gas Company (IGC) is launching an auction to allocate gas for compressed natural gas (CNG) projects. The initiative aims to supply industries and eligible users beyond Oman's pipeline network by making designated natural gas volumes available to qualified operators.
The auction will allow bidders to request a maximum daily allocation of 200,000 standard cubic metres (SCM) of natural gas. Bidders must propose a CNG facility location and suitable connection point on the OQ Gas Networks grid, subject to independent technical due diligence and regulatory approvals.
IGC has identified Sohar, Muscat, Ibri, Duqm, and Salalah as indicative locations for the CNG projects. The company stated that gas allocated under the scheme will be restricted to the local market and CNG production, prohibiting export or resale of the natural gas, power generation, and uses outside the approved scope.
The auction represents a further evolution of IGC's approach to gas allocation and market flexibility. Established in December 2022, IGC manages gas allocations and the purchase, sale, and transportation of natural gas on behalf of the Omani government.