Oman LNG signs 10-year supply agreement with TotalEnergies

TotalEnergies also announces final investment decision for Oman's Marsa LNG project
Oman LNG signs 10-year supply agreement with TotalEnergies
Oman LNG also signed a 10-year agreement with Shell to supply 1.6 million tons of LNG per year starting 2025

Oman LNG recently inked a sale and purchase agreement with TotalEnergies, one of its shareholders, to supply 800,000 metric tons of liquefied natural gas (LNG) per year. Oman LNG will supply TotalEnergies, which owns 5.54 percent of the company, for 10 years starting in 2025.

Strategic partnerships with Türkiye and Shell

In addition to the agreement with TotalEnergies, Oman LNG recently finalized agreements with key partners to further boost its supply capabilities. The company signed an agreement with Türkiye’s state gas grid operator Botas last week to supply around 1 million tons annually for 10 years starting in 2025. Moreover, it signed a 10-year agreement with Shell to supply 1.6 million tons of LNG per year starting 2025, further solidifying Oman LNG’s position in the global LNG market.

Marsa LNG Project

TotalEnergies has also made a final investment decision for Oman’s Marsa LNG project, marking a significant milestone in the country’s LNG industry. The project, managed by a joint venture named Marsa Liquefied Natural Gas, will see TotalEnergies owning 80 percent of the business, with the remaining stake held by Oman state oil company OQ.

The Marsa LNG project will utilize 150 million cubic feet of natural gas from the Mabrouk North-East field on onshore Block 10, in which the venture holds a 33.19 percent stake. This gas will serve as feedstock for the LNG plant. Moreover, this decision will allow Marsa LNG to extend its rights to Block 10 until 2050. Notably, Block 10 commenced production in January 2023 and reached a plateau this month.

Oman’s Marsa LNG project also includes building an LNG liquefaction plant with a 1 million tons per year capacity at Sohar port. The plant is expected to start production during the first quarter of 2028. In addition, the project includes a solar plan which will cover the plant’s power needs.

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Advancing renewable energy initiatives

TotalEnergies and Oman’s OQ are actively engaged in discussions to jointly develop a portfolio of up to 800 MW. This portfolio includes a 300 MW solar project to supply power to the Marsa LNG plant. This initiative underscores their commitment to integrating renewable energy solutions into LNG production processes.

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