Oman signs liquid hydrogen corridor deal
16 April 2025
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Oman has signed a historic joint development agreement to establish the world’s first commercial-scale liquid hydrogen corridor linking Oman to the Netherlands and Germany.
The corridor will enable the export of renewable fuels of non-biological origin (RFNBO)-compliant liquid hydrogen from Oman’s Port of Duqm to the Port of Amsterdam and to key logistics hubs in Germany, including the Port of Duisburg, and then onward to other European countries.
The deal was signed during a state visit by Sultan Haitham Bin Tarik, Prime Minister of Oman, to the Netherlands.
Hydrogen Oman (Hydrom), the sultanate’s hydrogen orchestrator, said the plan entails building the world’s largest hydrogen liquefaction, storage and export terminal, which will be established at the Port of Duqm.
The facility will ensure upstream production is aligned with national plans, and that the project integrates seamlessly into Oman’s broader hydrogen infrastructure and policy framework.
State-backed energy group OQ will lead the liquefaction infrastructure, which involves developing the hydrogen plant along with related storage and export facilities.
The centralised facility will draw from Duqm’s growing renewable hydrogen developments, leveraging the port’s strategic location as a maritime hub and special economic zone.
The centralised liquefaction plant will be supported by maritime transportation vessels developed by Ecolog, which will ship liquid hydrogen with zero boil-off, ensuring greater efficiency and reduced losses.
On the European side, the corridor will be anchored by re-gasification import terminals at the Port of Amsterdam, from which the hydrogen will be distributed to industrial offtakers in the Netherlands and Germany via gas pipeline networks, rail connections and barge distribution through the Dutch canal network.
The groundbreaking deal is one of several government-to-government agreements related to Oman's ambition of developing a global hydrogen hub.
In December, Hydrom and the Belgian Hydrogen Council signed a memorandum of understanding (MoU), setting the stage for enhanced cooperation across the hydrogen value chain.
The MoU sought to align policies; promote knowledge exchange and technological advancements; and explore opportunities across hydrogen production, infrastructure, transportation and utilisation.
In the first two rounds of its land auctions, Hydrom has signed land concession agreements with teams led by Denmark’s Copenhagen Infrastructure Partners, South Korea’s Posco and France’s Engie; Japan’s Marubeni; France’s EDF; and a team comprising London-based Actis and Australia’s Fortescue.
Oman has also signed what it refers to as legacy projects with other teams led by Belgium’s Deme, BP and Shell.
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QatarEnergy has issued force majeure to customers who have been affected by its decision to stop production and shipments of liquefied natural gas (LNG) and associated products.
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US-Israel attack on Iran incurs heavy regional price5 March 2026

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The joint US-Israeli military campaign against Iran, launched on 28 February under operations codenamed Epic Fury and Operation Roaring Lion, has pulled the GCC into the most destabilising regional confrontation in a generation.
Six days into the crisis, the scale of collateral damage to Gulf capitals is becoming fully visible in damaged infrastructure, grounded aircraft, shuttered ports, halted energy production and a darkening investment climate.
Every member of the GCC has absorbed Iranian missile or drone strikes, despite none having launched offensive operations against Tehran.
In contrast to the restrained signalling from Iran during the 12-day war in June 2025 – when it choreographed its Gulf retaliation to a single base in Qatar – this campaign represents a deliberate effort to punish the US and states harbouring its assets.
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Strangled logistics
The Strait of Hormuz – the 33-kilometre-wide channel between Iran and Oman – was also declared closed to traffic by the Islamic Revolutionary Guard Corps (IRGC) the same day the US-Israeli attacks began.
Closing the strait, through which approximately 20 million barrels of crude oil pass every day, has been a perennial Iranian threat, and now Tehran is making good on it.
The strait is the sole maritime exit for much of the energy exported from the Gulf states, making up around a fifth of all seaborne oil traded globally in total.
At least five vessels have been struck so far in enforcement of the blockade, but the real impediment to ships is now the withdrawal of war risk cover by insurance underwriters – leaving ships inside and outside of the strait stranded.
Oil prices have responded accordingly, with Brent crude rising above $80 a barrel – up from closer to $60 – and with analysts placing $100 a barrel firmly back on the table if the disruption runs for more than a few weeks.
LNG shutdown
If the Hormuz closure has convulsed oil markets, the direct attack on Qatar’s energy infrastructure has delivered a separate and arguably more structurally significant blow.
Iranian drones struck QatarEnergy’s facilities at both Ras Laffan Industrial City and Mesaieed Industrial City, forcing a complete halt to all liquefied natural gas (LNG) production and associated output.
Qatar, which operated 14 LNG trains with a combined annual capacity of 77 million tonnes – accounting for roughly 20% of global LNG trade – now operates none. Doha, incensed, has cut ties with Iran.
European benchmark gas futures meanwhile jumped almost 50% within hours of the announcement. Asian LNG spot prices rose by more than a third. Country-level squeezes have been even harder, with gas prices spiking by 93% in the UK, for example.
Qatari production had been filling the void left in Europe by its boycott of Russian gas, so its halting of production now places European energy stocks under significant stress. Asian buyers, including Bangladesh, India and Pakistan, will also be feeling the strain.
Regional trade risk
The same war risk exclusions that have grounded the tanker fleet apply with equal force to container shipping, bulk carriers and general cargo vessels – extending the disruption beyond energy into every category of goods that moves through Gulf ports.
And the ports themselves are also in jeopardy. Jebel Ali in Dubai – the region’s busiest port – was temporarily closed after fire broke out from debris falling from missile interceptions overhead. Other regional ports have also seen various suspensions.
The world’s major container carriers have also drawn their own conclusions. MSC, Maersk, Hapag-Lloyd and CMA CGM have all halted Hormuz crossings entirely.
Importers across the Gulf – a region that is overwhelmingly dependent on seaborne trade for food, consumer goods, construction materials and industrial inputs – face costly re-routing.
Vessels are discharging Gulf-bound containers at Salalah in Oman, Khor Fakkan, Sohar and Duqm, from where onward delivery might be arranged overland. Spot freight rates for Gulf-destined cargo are in turn rising sharply as feeder capacity is overwhelmed.
Travel under assault
The Gulf’s aviation hubs have also been brought to a relative standstill.
A drone strike on Dubai International, the busiest airport on earth for international travel, was the most dramatic incident, but several airports have been hit and sweeping airspace closures have grounded all but a handful of flights over the Gulf.
On the worst day so far, more than 1,500 flights to or from Middle Eastern destinations were cancelled. The broader long-haul linkage through the Gulf from Europe to Asia has also been severed, forcing international legs to reroute away from the Gulf corridor.
Drone and shrapnel strikes on luxury hospitality projects in the region have meanwhile dealt a heavy blow to the GCC’s touristic safe-haven status. The region’s busy meetings, incentives, conferences and exhibitions (MICE) calendar is in disarray.
Gulf tourism entered 2026 in a strong position. Regional travel bookings had reached close to $101bn – 23% above pre-pandemic levels. Luxury hotel occupancy across Dubai, Abu Dhabi, Doha and Riyadh had set successive records through the first two months of the year. That momentum has been destroyed inside of a week.
Tourism Economics projects a fall in Middle East travel arrivals of around 11% year-on-year even in an optimistic scenario where the conflict resolves within weeks – meaning 23 million fewer visitors and a $34bn contraction in tourism spending.
If the conflict runs for two months, the projected decline steepens to 27%, with up to 38 million lost arrivals and $56bn in foregone receipts.
Long-term risks
The IMF had projected GDP growth of about 4% across the six GCC economies in 2026, driven substantially by non-oil diversification and fuelled by sustained inflows of foreign capital, foreign talent and foreign visitors.
Each of those flows is now disrupted, and some portion of the disruption will outlast the immediate security situation. Businesses could also restructure themselves to mitigate for elevated scenario of future regional risk.
The GCC states find themselves in a position of extraordinary and largely undeserved exposure. They did not initiate this conflict, and several of them invested heavily in diplomatic outreach and mediation between concerned parties.
The region is nevertheless absorbing the consequences.
The preferred Gulf instruments of mediation, back-channel diplomacy and economic persuasion have been rendered irrelevant by the speed and scale of events.
The region’s airlines, ports, refineries, LNG complexes, hotels, conference centres, stock exchanges and carefully constructed global image are all paying a price set by decisions made elsewhere. And the bill is still running.
Investors will reassess, and the governments of the GCC now face the question of how to restore peace and order in a region being actively contested militarily by the US.
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Iraq hit by nationwide electricity blackouts5 March 2026
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Iraq has been hit by electricity blackouts, which impacted all of the country’s provinces, according to a statement issued by the country’s Electricity Ministry.
The blackouts initially struck on 4 March, and the ministry has since said that they were triggered by a “sudden drop in gas supplies to the Rumaila power plant” in the southern province of Basra.
This led to a rapid loss of 1,900MW, which triggered the nationwide grid failure.
The Electricity Ministry said that work was under way to gradually restore power.
Iraq’s oil and gas sector is facing mounting challenges amid the US and Israel’s ongoing war with Iran.
In the south of the country, oil exports have been paralysed by the closure of the Strait of Hormuz, and, in the country’s northern region of Iraqi Kurdistan, exports via the Iraq-Turkiye Pipeline have fallen to zero.
The closure of export routes has led to production stopping at some of the country’s biggest oil fields.
This has limited the country’s ability to produce the associated natural gas that is gathered during oil production and used to fuel the country’s power stations.
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