Belgium’s energy infrastructure company Fluxys and Omani state-owned transmission system operator OQ Gas Networks (OQGN) have signed a term sheet cooperation agreement to jointly develop the hydrogen transportation infrastructure in Oman, where Fluxys intends to own and operate the hydrogen network as a minority shareholder, alongside OQGN.
The cooperation agreement follows the signing of a memorandum of understanding (MoU) between the two organizations in 2023 to strategically collaborate in the hydrogen and CO2 network developments in Oman, as well as Fluxys’ acquisition of a 4.9% stake in OQGN as an anchor investor.
As disclosed, OQGN seeks to enable the “timely” development of decarbonization infrastructure in Oman, while Fluxys’ strategy is to invest in new low-carbon energy value chains with high renewable potential countries and connecting them to Belgium and Europe. Together, the companies intend to exchange knowledge derived from their experiences and prior learnings.
Commenting on the agreement, Mansoor bin Ali Al Abdali, CEO of OQGN, said: “We are very excited to work with Fluxys in jointly developing the hydrogen transportation network in Oman, and supporting Oman’s green hydrogen and decarbonisation initiatives. This cooperation is a clear signal of our commitment as the national energy infrastructure company in leading the development and deployment of green hydrogen infrastructure to support Oman’s energy transition goals and aspirations. Together with Fluxys, we will leverage our considerable joint experience and capabilities meeting Oman’s requirements for hydrogen transport infrastructure and realising the national agenda in a cost-effective manner.”
Pascal De Buck, Managing Director and CEO of Fluxys, stated: “We are delighted to partner with OQGN in developing a new hydrogen transportation network in Oman. As a shareholder of OQGN, this collaboration is a pivotal step in our strategy to accelerating the energy transition and creating new value chains. By harnessing our combined expertise, we aim to bring renewable hydrogen to Belgium and Europe, while also significantly contributing to Oman’s sustainable energy goals. Together, we are committed to creating a brighter, greener energy future.”