Oman's state-owned natural gas network operator, OQGN, has signed a term sheet with Belgium's Fluxys to jointly develop a hydrogen pipeline network in the Gulf nation, the companies announced Monday. 

The agreement marks a significant step in Oman's ambitions to become a major producer and exporter of green hydrogen.

OQGN plans to initially develop 300 to 400 kilometers (roughly 185 to 250 miles) of hydrogen pipeline to support its burgeoning green hydrogen production capacity. This initial phase is part of a broader national vision to establish a nationwide network spanning 2,000 kilometers (about 1,240 miles).

Under the term sheet, the Belgian energy infrastructure group Fluxys is expected to hold a minority stake in the development and will be involved in owning and operating the network. 

This collaboration builds on a memorandum of understanding signed in 2023 between the two entities to explore hydrogen and carbon dioxide network opportunities, with Fluxys acquiring a 4.9% stake in OQGN in the same year.

Mansoor bin Ali al Abdali, CEO of OQGN, stated that the partnership will enable Oman to meet its hydrogen infrastructure needs and support national targets in a "cost-effective manner."

Oman has been actively developing its green hydrogen sector, allocating land for several large-scale production projects and launching tenders. The Sultanate aims to produce up to 1.5 million tonnes of hydrogen annually by 2030, with a focus on exporting volumes to Europe.

Pascal De Buck, CEO of Fluxys, highlighted the synergy of expertise, stating that the collaboration aims to bring renewable hydrogen to Belgium and Europe while contributing to Oman's sustainable energy goals. 

Fluxys is also developing Belgium's hydrogen network after being designated its operator last month.