OMAN - Energy & Mining
CEO, Muscat Gases Company (MGC)
Imad Al Sabbagh has been the CEO of Muscat Gases Company SAOG since 2018. He has over 23 years of hands-on sales, marketing, and management experience within energy, FMCG, electrics, automotive, and hardware industries. Among numerous sales and marketing leadership positions, he managed nearly USD550 million of topline revenue and a team of up to 160 multinational professionals.
MGC is a SAOG Omani company, with the government owning approximately 54%. Its main products were industrial gases and LPG. In 2017, MGC sold 70% of its share of industrial gases to an American company called Air Products and formed a partnership in industrial gases. Later, MGC decided to sell the remaining 30% of the shares after determining that the business was unfeasible. MGC then became solely an LPG company that is used for many applications such as cooking gas, industrial, and commercial. MGC deals with wholesalers to refill their cylinders as the company has the largest number of stations for refilling cylinders. There is a total of nine refilling stations all over Oman, except Salalah. Commercially, MGC distributes bulk gas as the company transports the gas from the refinery to the warehouse and then onto factories, restaurants, hotels, and so on. In 2019, MGC won the Daleel petroleum tender to export liquid petroleum gas outside of Oman which is a significant point of MGC’s business.
Muscat Gases mainly export to the UAE and Africa. When MGC team analyzed the company’s future business, we recognized in completing the value chain of the business. Therefore, the company decided to enhance the business channel overseas in the last three years. MGC became a member of the World LPG Association in 2020. At the same time, we also introduced our company to the major manufacturers in Italy, Spain, Portugal, Norway, and Turkey. We signed up to be their agent representing their products in the Sultanate of Oman. Through this partnership, MGC became the first company in Oman to have the composite cylinder which is the latest cylinder with a lighter weight of 5.5-kg compared to the 22-kg steel ones and are also extremely safe. Currently, MGC has 17 new companies on board and all of them are A-plus companies from Europe. MGC is focused in working with companies that gives importance on quality and safety. MGC is looking forward in making HSE a high value in the community through collaboration with Civil Defense and increase people’s awareness regarding safety at the workplace. In 2021, MGC decided to expand that inaugurated two new companies. One of the companies is called Muscat Power Pioneer, which will do the installation, designing, testing, commissioning of power and approvals of gas or power products in the country. The company will handle the oil and gas sector, wind power, water power, and firefighting. At the same time, MGC also established a new company called United Marketing Solutions that will handle the marketing through application for gas delivery and working on making everything extremely accommodating for our customers.
In the Sultanate of Oman, the government is doing a great effort of still subsidizing the price of gas today and supports the country strongly in terms of gas. Because of this, it gives manufacturers opportunities to use gas for their products because of the lesser cost and give them an advantage in the other markets. In the past two years, the gas sector has been growing, and there is a surge in demands for more projects. Many investors are interested in Oman due to the new rules that give encouragement to the investors to venture with new businesses in the Sultanate. This is one of the reasons why MGC is interested in opening a branch in Salalah, which also renders many opportunities in the new industrial projects in pipeline. The company is aware that there will be more incoming projects for the next five years. MGC is optimistic that the economy will grow positively, especially as Bloomberg has currently rated Oman as BB+, which is an improvement in comparison two years ago.