Move to integrate gas and power sectors in Oman

The Ministry of Oil and Gas is currently in discussion with the Authority for Electricity Regulation Oman (AER) aimed at exploring a possible incorporation of the electricity sector into the Ministry, a top official revealed here yesterday.

Salim bin Nasser al Aufi (pictured), Oil and Gas Under-secretary, said the move stems from recommendations of the Energy Lab — a high-level forum hosted by the National Programme for Enhancing Economic Diversification (Tanfeedh) — which mooted, among other things, the integration of the governance structures of the electricity and gas sectors. “We are working on a programme to move the electricity sector to the Ministry of Oil and Gas,” said Al Aufi, citing synergies between the two sectors.

The Under-secretary made the comments during a panel discussion on energy efficiency organised by the EU-GCC Clean Energy Technology Network in partnership with Petroleum Development Oman (PDO) at the Crowne Plaza Muscat yesterday.

The Energy Lab, which ran from March 18 to April 26, 2018, urged the government to “improve and streamline governance structures, regulations and policies for both Gas and Electricity by 2019.’’

The multiplicity of government ministries and agencies that currently have a stake in energy-related activities in the Sultanate does not bode well for speedy and effective policy and decision-making on energy initiatives of strategic national importance, a report on the Energy Lab said.

Participants lamented the absence of a defined entity for making energy policy in the Sultanate — the mandate being shared in fragmented fashion across among a number of ministries and bodies, notably the Ministry of Finance, Financial Affairs and Energy Resources Council, Ministry of Oil and Gas and the Public Authority for Electricity and Water.

“Efforts to plan the development of the energy sector are not in harmony due to the presence of several stakeholders, causing delays in decision-making on sector policies, following-up on recommendations and programs associated with external parties, and the development and implementation of programmes to improve the sector as required,” the report said. The Energy Lab stressed the need for the standardization of policies related to the energy sector under one umbrella, coupled with efforts and create an effective governance structure to facilitate the development of uniformed policies and improve gas and electricity sectors altogether.