Oman weighs coal, LNG as alternative fuel resources
Oman’s authorities appear to be gravitating towards the idea of coal and liquefied natural gas (LNG) imports as possible fuel alternatives to natural gas — currently the mainstay energy resource for electricity generation and industrial fuel, and as feedstock for petrochemicals.
Changing market dynamics driven by the global economic downturn, coupled with the emergence and growing popularity of clean coal technologies, have prompted a serious rethink on the use of coal as a potential addition to Oman’s energy resource mix.
At the same time, Oman’s rapidly expanding industrial and petrochemicals base is competing with the power and associated water sector for natural gas, supplies of which are increasingly constrained in the face of escalating domestic demand.
This is also evident from last week’s announcement by the Ministry of Oil and Gas that new allocations of natural gas to the power industry would remain “capped for some time” as an incentive for the predominantly gas dependent sector to look at fuel alternatives.
Oil and Gas Ministry UnderSecretary Salim bin Nasser al Aufi voiced hope that the moratorium on new gas allocations to the electricity sector would “drive the discussion on renewables and alternative resources”, as well as promote efficient use of the resource in the Sultanate.
The strategic shift in longstanding policy governing gas supplies to the power sector is the latest in a pattern of developments witnessed of late, that espouse the pursuit of alternative fuel resources to help diversify the nation’s energy resource mix.