ARA is looking to launch the gas pipeline in the third quarter of 2027
Source: Oman Observer — Business
The story in brief
Muscat, August 18 Omani energy company Ara Petroleum plans to operate a gas export pipeline by the third quarter of 2027 as part of efforts to reduce gas flaring and improve...
Detailed summary
Muscat, August 18 Omani energy company Ara Petroleum plans to operate a gas export pipeline by the third quarter of 2027 as part of efforts to reduce gas flaring and improve... MUSCAT, AUGUST 18Omani upstream energy company ARA Petroleum plans to commission a gas export pipeline by the third quarter of 2027 as part of efforts to curb gas flaring and improve the utilisation of natural gas produced from its operations in Oman. The project, originally scheduled for earlier completion, will transport surplus gas from the Qalah and Burhaan facilities to the Kawther Gas Plant once operational, allowing gas that might otherwise be flared to be recovered and put to productive use. ARA Petroleum disclosed the revised commissioning timeline in its newly published 2025 Sustainability Report. “The Gas Export Pipeline project is a key initiative focused on reducing gas flaring while improving the effective use of natural gas across ARA Petroleum’s operations,” the company said, adding that full commissioning is now anticipated by Q3 2027. The project is expected to reduce gas flaring by approximately 93%, according to the report, significantly cutting greenhouse gas emissions while supporting Oman’s broader sustainability objectives and ARA Petroleum’s Net Zero ambitions. Key components include a Glass Reinforced Epoxy (GRE) pipeline designed for long-term gas transportation and a gas compression unit to facilitate efficient gas flow through the system. Together, the infrastructure will enable ARA to capture and transport surplus gas from its Qarat Al Milh Small Fields (QSF) operations for processing at Kawther. The pipeline project forms part of ARA Petroleum’s broader strategy to minimise routine flaring by converting excess gas into a useful energy resource. Under its “Flare to Power” approach, the company uses recovered gas as fuel for power generation, improving energy efficiency while reducing reliance on conventional fuels and lowering the carbon intensity of its operations. Progress was also recorded in gas utilisation during 2025. Burhan operations increased flare-gas utilisation by 7.2% year-on-year, reflecting operational measures to maximise the recovery and productive use of associated gas that would otherwise have been flared. The improvement contributes to lower greenhouse-gas emissions and greater resource efficiency, while reinforcing ARA Petroleum’s environmental and decarbonisation commitments. ARA Petroleum, established in 2014 and part of The Zubair Corporation portfolio, operates across the hydrocarbon exploration and production lifecycle, from exploration and appraisal through development and production.
Background & context
This story sits within Oman's broader reform agenda and efforts to grow Oil & Gas as a pillar of non-oil GDP. The region benefits from supportive energy prices, expansionary government budgets, and rising interest from sovereign wealth funds and foreign investors.
Key numbers & facts
- The project is expected to reduce gas flaring by approximately 93%, according to the report, significantly cutting greenhouse gas emissions while supporting Oman’s broader sustainability objectives and ARA Petroleum’s Net Zero ambitions.
- Burhan operations increased flare-gas utilisation by 7.2% year-on-year, reflecting operational measures to maximise the recovery and productive use of associated gas that would otherwise have been flared.
Key points
- Muscat, August 18 Omani energy company Ara Petroleum plans to operate a gas export pipeline by the third quarter of 2027 as part of efforts to reduce gas flaring and improve...
- MUSCAT, AUGUST 18Omani upstream energy company ARA Petroleum plans to commission a gas export pipeline by the third quarter of 2027 as part of efforts to curb gas flaring and improve the utilisation of natural gas produced from its operations in Oman.
- The project, originally scheduled for earlier completion, will transport surplus gas from the Qalah and Burhaan facilities to the Kawther Gas Plant once operational, allowing gas that might otherwise be flared to be recovered and put to productive use.
Why this matters
This matters because activity in Oil & Gas shapes capital flows, hiring and investor sentiment across Oman.
Economic & market impact
Potential impact: - Oil & gas majors and oilfield services may react to volume, price or policy signals.
GCC angle
For the rest of the GCC, this is a signal on the pace of activity in Oil & Gas. Capital flows and regulatory decisions in one Gulf state typically travel across borders given the similar economic structures and the coordination inside the GCC framework.
Risks & uncertainty
There is uncertainty around the read-through: projections can be moved by swings in oil prices, by US monetary policy tightening that most GCC central banks track via dollar pegs, and by regional geopolitical events. Headline numbers may also be revised when subsequent official data is published.
What happens next?
Watch for upcoming disclosures from listed names in Oil & Gas, official macro releases for Oman, and any commentary from regulators or sovereign wealth funds. Tharwa will refresh this briefing as new public information becomes available.
Sources used
This is an original Tharwa briefing based on the available source material. Read the full article from the publisher.
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