How Midstream Companies are Enabling CCUS: A Case Study

Abstract Carbon capture, utilization, and storage (CCUS) is a crucial pillar in the global decarbonization journey. The deployment of CO2 transportation infrastructure is pivotal to enabling successful CCUS value chains. This paper explores how OQ Gas networks (OQGN), Oman's exclusive natural gas transmission network owner and operator, is overcoming various challenges, from technical to commercial to regulatory, to develop Oman's open access, multi-user CO2 pipeline transmission network, linking CO2 emission sources to sinks. To conceptualize a national CO2 pipeline network, OQGN has followed a robust methodology in determining the CO2 market forecasts across the country, consisting of stakeholder engagements, the release of a CO2 market survey, while also examining significant emitters and respective sinks. A techno-economic analysis of the network was also conducted, as well as assessing viable commercial model options and the strategies and economic regulations needed to futureproof the network. Policies and regulations are crucial to accelerating CCUS uptake as they provide clarity and assurances to investors, lenders, and societies. In addition, OQGN is providing input to Oman's Policy Maker on CO2 transport regulations to define robust legal frameworks that ensure the health and safety of people and the environment while concurrently aiming to ease regulatory burdens. Based on the CCUS market projections, OQGN anticipates three CCUS ecosystems to be established in Oman: a Northern Ecosystem, a Central Ecosystem and a Southern Ecosystem; the ecosystems connect major emitters mainly located in coastal industrial areas to utilization sites further inland. The price cap model is concluded to be the most optimum due to its flexibility and adaptability. Moreover, futureproofing the network can be ensured through oversizing as well as through specific economic regulations or government support. This paper provides a case study of how a midstream company is growing its portfolio to transport a new commodity in a nascent sector, leveraging its expertise to address key challenges, and ultimately enabling a low carbon economy.