Oman LNG recently announced that it signed a sales and purchase agreement (SPA) with the Japanese company Kansai Electric Power FTS PTE. Ltd. The agreement encompasses the offtake of 0.4 million metric tons per annum of LNG from Oman LNG for four years starting in 2026.
This step aims to leverage the partnership between Oman LNG and Kansai Electric Power while expanding the reach to new buyers in Japan. Eng. Hamad Mohammed Al Nu’amani, CEO of Oman LNG, and Shinichi Kudo, CEO of Kansai Electric Power, signed the agreement.
Production expansion
Oman LNG has taken a major step this year toward expanding its operations and production. In late July, the government announced plans to develop an additional LNG train with a capacity of 3.8 million metric tons per annum at Qalhat Industrial Complex in South Sharqiyah Governorate.
The strategic expansion will boost Oman’s production of LNG to 15.2 million metric tons per annum by 2029. Moreover, it will optimize the utilization of the country’s available discovered volumes of natural gas resources while enhancing its LNG export capabilities.
“The addition of a new LNG train is a key component of Oman’s strategy to solidify its position as a leading producer and exporter of liquefied natural gas in the global market,” said H.E. Salem Al Aufi, Minister of Energy and Minerals.
Notably, Oman LNG currently has three trains with a production capacity of 11.4 million mt/year.
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Oman’s LNG exports
The 2024 World LNG Report reveals that Oman exported 11.43 million tonnes of LNG in 2023. This makes up 3 percent of the world’s total LNG exports and places Oman as the ninth-largest LNG exporter globally.
Oman’s LNG exports reach several countries around the world with South Korea receiving the largest share of 5.08 million. Following closely came Japan, China, and India. Smaller volumes of LNG also reached the Philippines, France, Spain, and Turkey last year.
The report also paints a broader picture of the global market. Currently, 20 exporting and 51 importing countries are connected through the LNG market. Global LNG receiving capacity has grown significantly, hitting 1,029.9 million tonnes per annum by the end of February 2024, with nearly 70 million tonnes per annum added in 2023 alone, marking the highest year of new additions since 2010.
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