Oman LNG Enters Supply Agreement with TotalEnergies

Oman LNG and TotalEnergies, a shareholder, have officially inked a sale and purchase agreement, heralding a significant stride in the realm of liquefied natural gas (LNG). According to statements released by the companies on Monday, this agreement entails the supply of 800,000 metric tons annually of LNG. TotalEnergies, with a 5.54% stake in Oman LNG, is poised to receive this supply over a decade, commencing in 2025.

In parallel, Oman LNG has been actively engaging in other noteworthy ventures. Last week, the company secured a pivotal agreement with Turkey's state gas grid operator, Botas, committing to provide approximately 1 million tons per annum (mtpa) of LNG for a decade starting from 2025. Additionally, another substantial 10-year deal was struck with Shell to supply 1.6 mtpa of LNG from 2025 onwards.

Meanwhile, TotalEnergies has cemented its commitment to Oman's energy landscape with the final investment decision (FID) for the Marsa LNG project. This ambitious endeavor will be managed by a joint venture named Marsa Liquefied Natural Gas, wherein TotalEnergies holds an 80% stake, while the remaining 20% is held by Oman state oil company OQ. Within the project, a daily supply of 150 million cubic feet of natural gas is earmarked, sourced from the venture's ownership interest of 33.19% in the Mabrouk North-East field located within onshore Block 10. This gas reservoir, which commenced production in January 2023, has recently achieved a production plateau.

TotalEnergies underscored the significance of the FID, stating that it enables Marsa LNG to prolong its tenure in Block 10 until 2050. The project encompasses the construction of an LNG liquefaction facility at Sohar port, boasting a capacity of 1 mtpa. Operations are slated to kick off by the first quarter of 2028, with a primary focus on catering to the burgeoning marine fuel market. To further bolster its sustainability endeavors, the project will incorporate the establishment of a solar plant, ensuring full coverage of the plant's power consumption.

Furthermore, TotalEnergies and OQ are actively engaged in advanced discussions to collaborate on a diverse portfolio, potentially encompassing up to 800 MW of power generation capacity. This collaborative effort is set to include a 300 MW solar project designed to supply energy to the Marsa LNG facility, thereby fortifying Oman's position as a leader in sustainable energy initiatives.

The alliance between Oman LNG and TotalEnergies, coupled with their strategic partnerships and ventures, underscores a concerted effort towards fostering sustainable energy solutions and driving the evolution of the global LNG landscape.