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JEDDAH: Oman and Spain are set to expand economic ties after signing four memorandums of understanding in Madrid aimed at boosting cooperation in green energy, water management, liquefied natural gas, and trade. 

The agreements were signed during the state visit of Sultan Haitham bin Tarik to Spain, the Oman News Agency reported. The MoUs mark a new phase in the strategic partnership between the two nations, boosting cooperation in investment, sustainability, and technology, with bilateral trade surpassing 94 million rials ($244 million) in 2024. 

The signing underscores Oman’s efforts to strengthen its global partnerships as it accelerates its Vision 2040 diversification plan, with renewable energy and industrial cooperation forming key pillars. 

“The first MoU was signed between Oman Chamber of Commerce and Industry and the Spanish Chamber of Commerce, Industry, Services, and Navigation,” the ONA report stated. 

It added: “It (MoU) aims to expand cooperation between the private sectors in both countries, encourage the exchange of trade delegations, organize joint exhibitions and seminars, exchange economic and commercial information, and support bilateral investments.” 

The second MoU, signed by Nama Water Services and the Spanish company Aguas de Valencia, seeks to enhance collaboration in water and wastewater management. It includes a pilot project to detect leaks in Nama’s network and a study on non-revenue water, with discussions underway for a potential 10-year partnership for broader projects. 

The third agreement, between Oman LNG and Spanish energy firm Naturgy, aims to explore a long-term LNG sale and purchase agreement that may include the supply of up to 1 million tonnes annually for 10 years starting in 2030. 

The two sides will also consider joint investment in building an LNG carrier with Asyad, alongside cooperation in accessing European regasification terminals and gas pipeline networks. 

The fourth memorandum was signed by the Ministry of Transport, Communications, and Information Technology with an international consortium comprising HIF EMEA, ACCIONA, Nordex Green Hydrogen, and Al-MEERA Investment. 

The deal seeks to develop a project to produce and supply ships with low-carbon green methanol in Dhofar Governorate, strengthening Oman’s push toward carbon neutrality and positioning Dhofar as a regional hub for green fuel and ship bunkering. 

The agreement includes feasibility and technical studies on producing and exporting green methanol using renewable energy, including solar and wind power, and converting captured carbon dioxide into methanol.

The Omani ministry will also coordinate with government entities and provide regulatory support, including land allocation and potential incentives for the project.