Oman LNG has signed a sale and purchase agreement (SPA) with its shareholder TotalEnergies to supply 800,000 tonnes per annum (tpa) of LNG, starting from 2025.
TotalEnergies, which holds a 5.54% stake in Oman LNG, will receive LNG for a decade.
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In addition to the supply agreement, TotalEnergies has made an FID for the Marsa LNG project in Oman.
The project, operated by the Marsa Liquefied Natural Gas joint venture (Marsa), which is 80% owned by TotalEnergies and 20% by Oman state oil company OQ, aims to integrate upstream gas production with LNG liquefaction capabilities.
The Marsa LNG project will harness natural gas from the Mabrouk North-East field in onshore Block 10, where Marsa holds a 33.19% interest.
The field began production in January 2023 and reached its production plateau in April 2024. The FID ensures Marsa LNG’s rights in Block 10 are extended until 2050.
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By GlobalDataAdditionally, the project’s scope includes constructing an LNG liquefaction plant at Sohar port with a capacity of one million tonnes per annum (mtpa).
Expected to commence production in the first quarter of 2028, the LNG produced is primarily intended for the marine fuel market, particularly LNG bunkering, in the Gulf region.
Furthermore, a solar plant will be established to meet the power needs of the Sohar liquefaction plant, highlighting the project’s commitment to sustainability.
TotalEnergies chairman and CEO Patrick Pouyanné said: “We are proud to open a new chapter in our history in the Sultanate of Oman with the launch of the Marsa LNG project, together with our partner OQ, demonstrating our long-term commitment to the country.
“This very innovative project illustrates our pioneer spirit and showcases the relevance of our integrated multi-energy strategy, with the ambition of being a responsible player in the energy transition. By paving the way for the next generation of very low emission LNG plants, Marsa LNG is contributing to making gas a long-term transition energy.”
Oman LNG is primarily owned by the Government of the Sultanate of Oman, with a 51% share. Other shareholders include Mitsubishi, Mitsui, Itochu, Korea LNG, PTTEP and Shell.
Last week, Oman LNG signed an SPA with BOTAS Petroleum of Türkiye, committing to supply 1mtpa of LNG for ten years starting from 2025.
This agreement followed similar contracts with Japan’s Jera and Shell for the delivery of 800,000tpa and 1.6mtpa of LNG, respectively, over the same duration.
