Oman maps $97.5bn energy investment across sectors; hydrogen leads

10/09/2025 03:54 AST

Oman has mapped a $97.48 billion investment programme across its energy system through 2032, with green hydrogen taking the largest share, according to a report released by the Energy Industries Council (EIC), the world-leading energy trade association.

The EIC Oman Country Report counts 76 projects under development, spanning hydrocarbons, power, renewables, and transition technologies.

The report also sets out how the sultanate plans to roll out hydrogen projects, upgrade its grid in stages, and prepare export infrastructure in parallel.

The report's data is drawn from EICDataStream, EICAssetMap, and other proprietary EIC databases. These databases cover global energy projects, supply chain capabilities, and infrastructure assets.

According to the report, hydrogen, which includes 16 developments, is at the centre of the country's energy plans.

Two auction rounds have awarded eight large-scale hydrogen projects in Duqm and Dhofar, with a third round underway. The awarded schemes pair multi-gigawatt solar and wind inputs with green hydrogen production, mostly converted into ammonia for export.

These developments could see an estimated $49 billion in investment supported by approximately 29 GW of renewable capacity, positioning the country as a major hub in the global clean energy transition.

Beyond hydrogen, the report tracks major investments across other sectors, including $19.05 billion in downstream, $13.79 billion midstream, $9.86 billion renewables, $4.9 billion upstream, $1.08 billion power, $780 million energy storage, $730 million SAF, and $150 million CCS.

LNG, part of the midstream portfolio, plays a key role in sustaining revenue streams while hydrogen projects scale up. One such project is Marsa LNG, now in engineering, procurement and construction (EPC), with a 2028 start-up target.

Among downstream projects is DRPIC's petrochemicals complex, now in early design and targeting completion by 2029. "Global trends have impacted the development of downstream projects in Oman," the report says, citing shifting energy demand, stricter environmental regulations, and rising project costs as key factors.

Globally, large refinery and petrochemical projects face delays as investor appetite cools in response to long payback periods and oversupply in markets like China.

Oman plans to add around 5.5 GW of renewable power between 2027 and 2032, including 3.28 GW of solar photovoltaic and 0.6 GW of concentrated solar power. 2.57 GW of onshore wind is expected to come online by 2030.

Despite these ambitions, the report flags key pressure points. Final investment decisions (FIDs) depend on bankable offtake agreements for green hydrogen and ammonia.

Grid integration will require large-scale energy storage, but so far only small battery units have been confirmed, tied to scheduled power delivery. Hydrogen developments also need to factor in water use and brine disposal, which affect cost and permitting. Regional competition for contractors and materials could also slow progress, said the report.

"Oman's approach pairs auctioned land, awarded to hydrogen developers through competitive rounds, with defined renewable energy inputs to power production," stated the report author Shaheera Shaharuzzaman, EIC energy analyst.

"Export volumes ramp as projects scale, while LNG and petrochemicals sustain near-term receipts. Power projects come online in set windows, and a reliable gas network reduces integration risk. This structure positions Oman to scale in stages while keeping the system stable," he added.

Ryan McPherson, EIC Regional Director for Middle East, Africa & CIS, said: "Across the technologies we track, few markets have joined the dots like Oman. The design encapsulates the whole system, with policy, land, power, and export channels pulled into one integrated plan."

"What this does is give investors a clear line of sight across the energy production chain, and room to grow without losing control. It's a real opportunity for the country, and we'll keep tracking delivery and surfacing project and supply-chain opportunities as they move from award to final investment decision and build," he added.

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