Interview: Hamed Al Naamany
What are the priorities of the domestic natural gas industry in light of global developments?
HAMED AL NAAMANY: The local natural gas sector is working to remove bottlenecks in operations, investment and procedures amid global macroeconomic shifts. The industry is also prioritising the optimisation of existing facilities and production enhancements. Looking to the future, the focus will be on strengthening operations and becoming more responsive to changes in demand, with an emphasis on making liquefied natural gas (LNG) competitive and available to larger markets.
While shifting production to meet demand, particularly in Asia and Europe, the local sector remains open to exploring untapped growth. The importance of the LNG segment is underscored by further foreign investment in Oman LNG. The company’s initial offering in early 2023 was oversubscribed seven times, reflecting strong demand for LNG and the sector’s ability to adapt to changing conditions in the years following the onset of the Covid-19 pandemic.
To what extent might a greater emphasis on developing the domestic gas industry facilitate the transition towards renewable energy sources?
AL NAAMANY: Oman has an opportunity to lead the regional decarbonisation process while promoting the development of renewable energy sources. The key will be creating more synergies between traditional energy sources, hydrogen and renewables, as well as increasing opportunities for revenue generation. In this sense, natural gas represents a crucial stepping stone to achieve the country’s objective of becoming a hydrogen-centric economy by 2040.
Meanwhile, electricity consumption in Oman continues to rise, with renewables and natural gas required to meet this increasing demand. The transition opportunities are drawing the attention of local and international investors. Furthermore, gas has a low carbon footprint, which aligns with the Oman net-zero target 2050. Gas prices are expected to fluctuate in the medium term, following the cyclical nature of the sector. Staying ahead of the curve is therefore crucial for the success of our companies.
Where do you identify the main opportunities to boost efficiencies across the energy sector, and particularly in the gas industry?
AL NAAMANY: Investment in the local energy sector with energy-efficient technologies will boost our competitiveness across the value chain, helping to improve Oman’s overall international standing. The key is to balance the well-being of society with sustainable and reliable access to energy. More needs to be done in line with global trends, and this involves all stakeholders in the energy sector – from small entities to large corporations. Oman LNG has an important role to play by demonstrating the positive impact of such investment strategies on the sector’s long-term financial performance and sustainability.
In what ways is the evolution of the energy sector impacting Oman’s human capital requirements?
AL NAAMANY: The development of human capital is critical for Oman’s energy sector. There is a growing interest in hydrogen and renewable energy among the younger generations, and it will be necessary for the current workforce to upskill and adapt to these trends – including at the executive level. The private sector has an important role to play in this regard, and more efforts in capacity building will be beneficial in preparing the next generation of Omanis to capitalise on opportunities in the sector, thus enhancing the overall competitiveness of the local workforce on the global stage in the process. Given the job opportunities available in international markets, Omanis can also become ambassadors for regional advancement in the sector and contribute to global efforts to meet future energy demands.
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