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Oman Infrastructure

Oman’s energy infrastructure has developed around two connected needs: moving hydrocarbons from inland production areas to coastal processing and export sites, and supplying reliable electricity and water to cities, industries and new economic zones. For many years, the electricity system reflected the country’s geography. Northern Oman was served mainly by the Main Interconnected System, Dhofar operated through a separate regional network, Musandam relied on its own smaller system, and oil and gas operators maintained additional power assets in remote production areas.

That structure is changing. Large transmission projects are creating a stronger national backbone, while solar and wind plants are beginning to reduce the power sector’s dependence on natural gas. Duqm, Sohar, Sur and Salalah are also becoming more important as industrial energy centres. Oman’s infrastructure strategy is therefore about connecting regional systems, supporting industrial growth, using gas more efficiently and preparing the grid for a much larger share of renewable electricity.

Rabt Is Turning Separate Power Systems Into a National Backbone

The North–South Interconnect, commonly known as Rabt, is the most important change in Oman’s electricity infrastructure. The first phase extended the high-voltage network from northern Oman into Al Wusta and connected Duqm to the Main Interconnected System in late 2023. This gave the Duqm Special Economic Zone access to the wider grid and reduced its dependence on a more isolated supply structure.

The second phase is designed to continue south from Duqm toward Dhofar. Its planned completion would connect the Main Interconnected System with the Dhofar Power System through a 400 kV corridor. Electricity could then move more efficiently between northern and southern Oman, improving reserve sharing and reducing the need for each region to maintain as much separate backup capacity. The system operator would also gain more freedom to dispatch the lowest-cost available generation.

The project matters because demand is rising quickly. Peak demand in the Main Interconnected System reached 7,503 MW in 2024, while Dhofar recorded 801 MW. Current planning forecasts place those figures at about 12,198 MW and 1,469 MW respectively by 2031. Industrial projects, tourism, commercial construction and new bulk customers are expected to account for much of the increase.

Rabt also opens areas with strong solar and wind resources to the transmission network. Renewable projects are often located far from the largest urban loads, so new generation must be supported by substations, long-distance lines and stronger grid-control systems. Musandam is likely to remain separate because of its geography, but the north–south connection will give most of Oman a more unified electricity backbone.

Gas Still Supports the Grid, but Solar and Wind Are Changing Its Shape

Natural gas remains the main fuel for electricity generation in Oman. Combined-cycle gas plants provide dependable output, respond to changing demand and support the water sector. They will remain important as renewable capacity expands because Oman’s highest electricity demand occurs during hot periods when cooling loads are high.

The infrastructure challenge is now to use gas more efficiently rather than simply build more gas-fired capacity. Oman has reduced the gas required to generate each unit of electricity through newer combined-cycle plants, improved dispatch and the replacement of older thermal desalination technology with more efficient reverse-osmosis facilities. Gas saved in the power sector can be directed toward industry, LNG exports or other uses.

Utility-scale renewable projects are changing the location and operating pattern of the grid. The Ibri II solar plant established a 500 MW renewable base, while Manah I and Manah II added another 1,000 MW. Further solar and wind developments are planned across Al Wusta, Dhofar and other regions. Oman’s procurement plan projects renewable generation at around 30 percent of electricity output by 2030.

A higher renewable share will require more flexible infrastructure. Solar output is strongest during the day, while electricity demand can remain high after sunset. Battery storage, demand response, improved forecasting and flexible gas generation will therefore become more important. Oman is evaluating utility-scale storage and other technologies that could reduce the need for conventional peaking plants. Its wholesale electricity spot market, launched in 2022, also allows eligible generators outside long-term procurement contracts to sell power into the system.

Duqm, Sohar and Sur Anchor Oman’s Industrial Energy Network

Oman’s energy infrastructure extends beyond the electricity grid. Its oil and gas system links interior fields with refineries, petrochemical plants, LNG facilities, storage sites and export terminals along the coast. This network supports both government revenue and the wider economic diversification programme.

Duqm has become the clearest example of infrastructure-led development. The OQ8 refinery, opened in 2024, can process about 230,000 barrels of crude oil per day. Its location on the Arabian Sea allows it to serve international markets without requiring ships to pass through the Strait of Hormuz. The refinery also gives the Duqm Special Economic Zone an anchor industry around which storage, logistics, maintenance services and other investments can develop.

Sohar plays a similar role in northern Oman. Its refinery, port, industrial estate and petrochemical facilities form an integrated energy and manufacturing cluster close to major shipping routes. Mina Al Fahal near Muscat remains an important refining and export location, while Salalah supports fuel storage and distribution for southern Oman.

Sur is the centre of the country’s LNG export infrastructure. Oman LNG operates three liquefaction trains at Qalhat with a stated nameplate capacity of 10.4 million tonnes per year. Gas pipelines connect the plant with upstream production, while storage tanks and marine facilities connect Omani gas with overseas buyers. The same national gas network supplies power stations and industrial plants.

These coastal hubs create corridors linking extraction, transport, processing, power supply and export activity. Their continued growth will depend on reliable electricity, adequate gas supply, port capacity and coordination between industrial demand and national energy planning.

Storage and Regional Links Will Define the Next Phase

Oman’s next infrastructure phase will be shaped by scale. The country plans to add large volumes of renewable generation while electricity demand grows and industrial zones seek dependable supply. That combination will place greater importance on storage, transmission planning and digital system management.

Regional interconnection can also provide emergency support and future electricity-trading opportunities, although domestic integration remains the immediate priority. The main risk is not a lack of projects. It is whether transmission, generation, storage and industrial demand develop in the correct sequence. Renewable plants built before grid reinforcements may face connection limits, while large industrial projects can create sudden increases in local demand.

Oman is in a strong position because it already has modern gas infrastructure, major ports, established independent power procurement and a clear transmission expansion programme. Rabt, new substations and renewable projects are converting a set of regional systems into a more integrated national platform. Its success will depend on completing the north–south connection, maintaining sufficient flexible capacity and ensuring that electricity infrastructure expands at the same pace as Duqm, Sohar, Salalah and the wider industrial economy.