Burr confirms the existence of improvised gas networks at the BBB

The story in brief

Muscat, August 21 Standard & Poor's has affirmed the long-term credit rating of 'BBB-' for OQ Gas Networks (OQGN), the only natural gas infrastructure company in the Sultanate of Oman. BUSINESS REPORTERMUSCAT, AUGUST 21S&P Global Ratings has affirmed its ‘BBB-’ long-term issuer credit rating on OQ Gas Networks (OQGN), Oman’s sole natural gas infrastructure operator, citing its monopoly position, strategic importance to the national economy and the stability of the country’s regulated gas transmission framework.The ratings agency also maintained a stable outlook on OQGN, reflecting the outlook on its parent, OQ SAOC, which is itself rated ‘BBB-’ with a stable outlook.

Detailed summary

Muscat, August 21 Standard & Poor's has affirmed the long-term credit rating of 'BBB-' for OQ Gas Networks (OQGN), the only natural gas infrastructure company in the Sultanate of Oman. BUSINESS REPORTERMUSCAT, AUGUST 21S&P Global Ratings has affirmed its ‘BBB-’ long-term issuer credit rating on OQ Gas Networks (OQGN), Oman’s sole natural gas infrastructure operator, citing its monopoly position, strategic importance to the national economy and the stability of the country’s regulated gas transmission framework.The ratings agency also maintained a stable outlook on OQGN, reflecting the outlook on its parent, OQ SAOC, which is itself rated ‘BBB-’ with a stable outlook. S&P said OQGN’s strong business risk profile is supported by its low-risk utility operations and predictable revenue model, despite the company’s relatively concentrated geographic footprint and limited scale.OQGN operates under a 50-year gas transportation concession from the government of Oman extending to 2070, making it the monopoly provider of gas transmission services in Oman. The company is regulated by the Authority for Public Services Regulation (APSR) under a regulated asset base (RAB) framework designed to provide a stable return on assets while allowing recovery of operating and capital expenditure.S&P said the framework provides OQGN with high revenue visibility and shields it to a significant degree from fluctuations in gas transportation volumes, as transmission tariffs are based on booked capacity rather than actual volumes transported.S&P expects OQGN’s financial metrics to remain consistent with its ‘BBB-’ rating despite planned investments to expand its pipeline network. It forecasts funds from operations (FFO) to debt of 20%-24% in 2026, compared with 23.7% in 2025, before moderating to 16%-20% in 2027. The agency expects adjusted EBITDA of RO 110 million-125 million in 2026 and RO 100 million-115 million in 2027.The company is projected to invest RO 45 million-60 million annually in 2026 and 2027, including RO 10 million-15 million in maintenance capital expenditure and RO 25 million-40 million in growth capex.These investments are aimed at supporting rising natural gas demand and Oman’s medium-term gas production targets. OQGN expects to increase gas transportation capacity to 80.3 billion cubic metres (bcm) by 2027, from 76.3 bcm, while expanding its pipeline network to 4,717 km from 4,368 km.

Background & context

This story sits within Oman's broader reform agenda and efforts to grow Banking 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

It forecasts funds from operations (FFO) to debt of 20%-24% in 2026, compared with 23.7% in 2025, before moderating to 16%-20% in 2027.
The agency expects adjusted EBITDA of RO 110 million-125 million in 2026 and RO 100 million-115 million in 2027.The company is projected to invest RO 45 million-60 million annually in 2026 and 2027, including RO 10 million-15 million in maintenance capital expenditure and RO 25 million-40 million in growth capex.These investments are aimed at supporting rising natural gas demand and Oman’s medium-term gas production targets.
OQGN expects to increase gas transportation capacity to 80.3 billion cubic metres (bcm) by 2027, from 76.3 bcm, while expanding its pipeline network to 4,717 km from 4,368 km.

Key points

Muscat, August 21 Standard & Poor's has affirmed the long-term credit rating of 'BBB-' for OQ Gas Networks (OQGN), the only natural gas infrastructure company in the Sultanate of Oman.
BUSINESS REPORTERMUSCAT, AUGUST 21S&P Global Ratings has affirmed its ‘BBB-’ long-term issuer credit rating on OQ Gas Networks (OQGN), Oman’s sole natural gas infrastructure operator, citing its monopoly position, strategic importance to the national economy and the stability of the country’s regulated gas transmission framework.The ratings agency also maintained a stable outlook on OQGN, reflecting the outlook on its parent, OQ SAOC, which is itself rated ‘BBB-’ with a stable outlook.

Why this matters

This matters because activity in Banking, Oil & Gas shapes capital flows, hiring and investor sentiment across Oman.

Economic & market impact

Potential impact: - Banks may see shifts in mortgage, project finance and corporate lending pipelines. - Oil & gas majors and oilfield services may react to volume, price or policy signals.

Potentially related sectors

BankingOil & Gas

GCC angle

For the rest of the GCC, this is a signal on the pace of activity in Banking, 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 Banking, 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

Oman Observer — Business