In the north, OGC said it is targeting completion, by the end of this year, of a 301 km pipeline from Fahud to Suhar, which is being constructed to cater to support natural gas demand by new industrial and manufacturing investments in Sohar Port and Freezone, and Suhar Industrial City. Work is also ongoing on a 236 km gas pipeline that will serve as an energy lifeline to the Special Economic Zone (SEZ) in Duqm, it said. Additionally, the process of transferring government-owned gas pipeline assets operated by BP Oman in central Oman “is in the final stage”, said OGC.
The developments stem from the landmark Restated Concession Agreement (RCA) signed by OGC with the Omani government earlier this year, granted the utility the concession to own and operate Oman’s gas transmission system of pipelines, metering, compressor and gas supply stations under a new revenue framework for the next 50 years.
The new framework reshapes the gas transmission sector by implementing a cost-reflective tariff to transport gas across the system and new (market) processes that guide the interaction between OGC, the Ministry of Oil & Gas (as the shipper), gas producers and final gas consumers. The framework is based on a Regulatory Asset Base (RAB) method consistent with international best practices and will be regulated by the Authority for Electricity Regulation. OGC is currently in the process of being transformed into Oman’s sole, leading and independent gas transmission system owner and operator (commonly referred to as the “gas TSO”).
Source Link: www.omanobserver.om