Oman and Spain sign four MoUs across various sectors

The Sultanate of Oman and the Kingdom of Spain signed four memoranda of understanding (MoUs) in the fields of green methanol, liquefied natural gas (LNG), water and wastewater management, and economic cooperation to develop trade and investment relations between the business communities of the two countries.

The signings took place in Madrid during the state visit of His Majesty Sultan Haitham bin Tarik to the Kingdom of Spain.

The first MoU was signed between Oman Chamber of Commerce and Industry and the Spanish Chamber of Commerce, Industry, Services, and Navigation. It aims to expand cooperation between the private sectors in both countries, encourage the exchange of trade delegations, organise joint exhibitions and seminars, exchange economic and commercial information, and support bilateral investments.

The second MoU, signed by Nama Water Services with the Spanish company ‘Aguas de Valencia’, aims to enhance cooperation in water and wastewater management and implement innovative solutions based on artificial intelligence to improve service quality, reduce water loss, and enhance infrastructure efficiency.

Under this MoU, a pilot project for leak detection in the water network of Nama Water Services will be implemented, along with a study of non-revenue water from technical, commercial, and operational perspectives. Subsequent discussions will focus on establishing a long-term partnership of up to 10 years for implementing comprehensive projects in water and wastewater networks.

This cooperation falls within the framework of enhancing the exchange of expertise and modern technologies between Oman and Spain in the water and wastewater sector, supporting efforts to develop sustainable and smart water resource management.

The third MoU, signed by Oman LNG Company with the Spanish company ‘Naturgy’, aims to explore and discuss a long-term LNG sale and purchase agreement, which may include the supply of up to one million tons annually for 10 years starting from 2030.

Pursuant to the MoU, the two companies will also seek a joint investment in building an LNG carrier in cooperation with Asyad for maritime transport, purchase LNG shipments from ‘Naturgy’ to continue meeting the needs of the European market, and study opportunities for access to European regasification terminals and associated gas pipeline networks to enhance LNG imports and subsequent sales, cooperating in this field to develop global commercial opportunities.

The fourth MoU was signed by the Ministry of Transport, Communications and Information Technology with an international consortium of companies comprising HIF EMEA, ACCIONA & Nordex Green Hydrogen and Al MEERA Investment. It aims to explore and develop a project for producing and supplying ships with low-carbon green methanol in Dhofar Governorate, enhancing Oman’s efforts to achieve carbon neutrality and establishing Dhofar as a leading hub for green fuel and ship bunkering in the Middle East region.

Under this MoU, there will be collaboration on assessing the necessary technical, regulatory, and commercial aspects for establishing a major facility to produce green methanol, leveraging Oman’s renewable energy sources and advanced infrastructure.

The consortium will conduct feasibility studies and economic and technical analyses to explore the potential for ship bunkering and exporting green methanol produced in Dhofar Governorate by integrating solar and wind energy to produce green hydrogen and utilising industrial or biogenic carbon dioxide, subsequently converting it into green methanol. The Ministry of Transport, Communications and Information Technology will facilitate communication with relevant government entities and provide the necessary regulatory support, including land allocation and considering incentives for the project.

The MoUs were signed for Oman by Engineer Salim bin Nasser Al Aafi, Minister of Energy and Minerals; Faisal bin Abdullah Al Rowas, Chairman of the Board of Directors of Oman Chamber of Commerce and Industry; Qais bin Saud Al Zakwani, CEO of Nama Water Services; and Hamad bin Mohammed Al Nu’amani, CEO of Oman LNG.

The Spanish signatories included: José Luis Bonet, Chairman of Chamber of Commerce; Pablo Calabuig, representing the Spanish company ‘Aguas de Valencia’; Francisco Reynés Massanet, CEO of Naturgy; and, representing the international consortium Pablo Pulpeir, CEO ACCIONA & Nordex Green Hydrogen; Thorsten Herdan, CEO of HIF EMEA; and Haythem Macki, CEO of Al MEERA Investment.

This is an unofficial English version of an Arabic report. To view the official Arabic text, click here.