Oman considers domestic natural gas pricing reform to boost efficiency and support energy transition

Oman is evaluating reforms to its domestic natural gas pricing structure as rising global prices and growing demand put pressure on the national gas system. Abdulrahman al Yahyaei, CEO of Integrated Gas Company (IGC), said the country is moving toward more disciplined and value-based pricing rather than blanket subsidies. The goal is to encourage efficiency, reflect economic value, and support responsible consumption while keeping Oman attractive for strategic industrial investment. Industrial consumers in Oman are responding to the changing market by adopting energy efficiency measures, electrification, renewable energy integration, and lower-carbon production methods. Some companies are exploring hydrogen and process optimization to stay competitive. Utility-scale solar and wind projects are already reducing gas consumption during daylight hours, though gas remains essential for evening peaks and system stability. Seasonal summer demand for air conditioning remains a major stress point for the gas system. IGC works with electricity and gas sector stakeholders to manage supply, optimize nominations, and ensure uninterrupted service to priority sectors. Gas allocation during tight periods is guided by national priorities including security of supply, power and water requirements, and strategic industries. The reforms aim to free up gas volumes for higher-value applications while supporting Oman's energy transition goals.