Oman Signs Agreement to Establish First Integrated Green Methanol Production Facility in Dhofar

Muscat, The Gulf Observer: The Ministry of Transport, Communications, and Information Technology has signed an agreement to launch Oman’s first integrated green methanol production facility, marking a major milestone in the nation’s clean energy transition.

The project, to be implemented under a Public-Private Partnership (PPP) framework, aims to establish an integrated centre for the production and supply of green methanol in the Dhofar Governorate.

This strategic initiative is designed to position the Sultanate of Oman as a leading regional hub for the supply of carbon-free fuel to the global maritime industry. It aligns with the country’s long-term vision to diversify its energy sources and support international efforts toward sustainable shipping solutions.

According to the Ministry, the project will deliver multiple economic and environmental benefits, including strengthening Oman’s logistics competitiveness in global markets, increasing its annual contribution to the Gross Domestic Product (GDP), and creating high-quality employment opportunities for Omani nationals.

In addition, the project will advance Oman’s commitment to achieving net-zero emissions and reducing carbon output, while also stimulating local supply chain development by attracting long-term contracts for methanol fuel.

The establishment of this facility represents a key step in Oman’s National Energy Strategy, reflecting the government’s determination to promote sustainable industrial growth and strengthen the Sultanate’s role as a key player in the global clean energy market.