Oman LNG, TotalEnergies ink supply deal

Oman LNG and TotalEnergies have inked a deal for the supply of 800,000 metric tons per year of liquefied natural gas (LNG), the two companies said in a joint statement on Monday.

TotalEnergies, a significant shareholder holding a 5.54 per cent stake in Oman LNG, will receive supply from the company for a decade starting in 2025, as stated in their respective releases.

Oman LNG has recently secured an agreement with Turkey’s state gas grid operator, Botas, to provide around 1 million tons per annum (mtpa) of LNG for a decade from 2025 according to Reuters. This is in addition to a 10-year deal finalised with Shell to supply 1.6 mtpa starting from 2025.

TotalEnergies has taken a significant step forward by making a final investment decision (FID) for Oman’s Marsa LNG project, said the French oil major.

The project will be managed by a joint venture named Marsa Liquefied Natural Gas, wherein TotalEnergies holds an 80 per cent stake, with the remaining held by Oman’s state oil company, OQ. It involves extracting 150 million cubic feet of natural gas daily from the venture’s 33.19 per ceny stake in the Mabrouk North-East field on onshore Block 10, serving as feedstock for the Marsa LNG plant. Production commenced in January 2023, reaching a plateau this month. “The FID enables Marsa LNG to extend its rights in Block 10 until its term in 2050,” mentioned TotalEnergies.

Furthermore, the project encompasses the construction of an LNG liquefaction facility at Sohar port, with a capacity of 1 mtpa.

Production is slated to commence by the first quarter of 2028, primarily targeting the marine fuel market. Additionally, a solar plant will be erected to fully cater to the plant’s power requirements.

TotalEnergies and OQ are in advanced discussions to collaboratively develop a portfolio of up to 800 MW, including a 300 MW solar project slated to power Marsa LNG, as outlined by TotalEnergies.