Oman-based OQ Gas Networks Company (OQGN) has awarded an engineering, procurement, and construction (EPC) works contract, in addition to line pipe supply, for its OR105m ($272.2m) second Fahud–Suhar loop line project.

The 193km pipeline is designed to bolster Oman's natural gas infrastructure and cater to the increasing regional energy demands.

Muscat Daily reported OQGN’s disclosure to the Muscat Stock Exchange, which said: "OQ Gas Networks is pleased to announce the awarding of the tender for engineering, procurement, and contracting works for the 42in second Loop Line Fahud–Suhar Project to The Petroleum Projects Company Petrojet and Partners LLC."

Indian pipe manufacturer Jindal has been awarded the contract to supply 193km of line pipes.

The project's cost will be included in OQGN's Regulated Asset Base (RAB), with the return on investment determined by the weighted average cost of capital (WACC), currently set at 7.79% under Price Control 3 until 2027.

Scheduled for completion in 2027, the Fahud–Suhar loop line project is expected to increase OQGN's northern gas network capacity by nine million standard cubic metres a day, as reported by.

This expansion is crucial for meeting the surging demand from key industrial sectors and power generation facilities.

As Oman's sole natural gas transportation network operator, OQGN manages over 4,000km of pipeline infrastructure across the country and plays a pivotal role in supplying natural gas to various critical industries.

These include power generation, water desalination, and the production of cement, aluminium, fertiliser, and petrochemicals.