Muscat – Integrated Gas Company (IGC) on Thursday signed a new set of agreements under Oman’s Spot Gas Market, further strengthening the flexibility of the national gas system, improving resource allocation efficiency, and enhancing the economic value of the sultanate’s natural gas resources.

The signing ceremony was held under the patronage of H E Qais bin Mohammed Al Yousef, Chairman of the Public Authority for Special Economic Zones and Free Zones (OPAZ), and attended by senior government officials, industry leaders, gas producers and consumers, as well as representatives from both the public and private sectors.

The agreements build on the progress achieved since the launch of Oman’s Spot Gas Market in mid-2024. The market has introduced more dynamic and efficient mechanisms for allocating natural gas through competitive auctions and direct transactions, improving transparency while ensuring available gas volumes are directed towards the most economically valuable uses.

Abdulrahman Al Yahyaei, Chief Executive Officer of Integrated Gas Company, said the Spot Gas Market has evolved into a strategic platform that enhances flexibility, efficiency and responsiveness in Oman’s gas sector.

He said, “The market enables us to allocate available gas resources more effectively, support industrial expansion, and maximise the economic value generated from the sultanate’s natural gas resources. As Oman’s economy continues to diversify and industrial demand grows, flexible, market-based mechanisms such as the Spot Gas Market will play an increasingly important role in supporting sustainable economic development and long-term energy security.”

The Spot Gas Market has become an important enabler of industrial development by allowing businesses to secure additional or short-term gas volumes to meet operational requirements, expansion plans and changing market conditions. This flexibility supports production continuity, facilitates new investment, and strengthens the competitiveness of Oman’s industrial sector.

The market has also enhanced the national gas system’s ability to balance supply and demand by directing available volumes to the most valuable and time-sensitive applications, improving overall resource efficiency and increasing the economic returns from the country’s natural gas resources.

In addition to its economic benefits, the Spot Gas Market contributes to Oman’s sustainability objectives by providing industrial and commercial facilities with access to cleaner-burning natural gas as an alternative to diesel during periods of peak energy demand. This supports emissions reduction efforts, improves energy efficiency, and contributes to the Sultanate’s net-zero ambitions.

The initiative has further strengthened revenue generation opportunities through flexible marketing channels that respond to evolving market conditions and customer requirements.

Natural gas continues to play a central role in Oman’s economy, contributing around 95% of the fuel required for electricity and water production across the sultanate, while directly supplying more than 150 industrial and commercial facilities.