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Oman LNG indications supply deal with TotalEnergies

Oman LNG and TotalEnergies, among its shareholders, have actually signed a sale and purchase arrangement to provide 800,000 metric tons each year of melted natural gas, the business stated on Monday.

TotalEnergies, which owns 5.54% of Oman LNG, will be provided by the business for ten years from 2025, they stated in different statements.

Oman LNG recently signed an agreement with Turkey's state gas grid operator Botas to provide about 1 million heaps per annum ( mtpa) of LNG for 10 years from 2025. It likewise signed a 10-year handle Shell to provide 1.6 mtpa from 2025.

Established in 1994 after the discovery of considerable gas reserves, Oman LNG is 51% owned by the Omani government, 30% by Shell, 5% by Korea LNG, 2.77% each by Japan's Mitsubishi Corporation and Mitsui & & Co, 2% by Thailand's PTTEP and 0.92% by Itochu Corporation. The company has production capability of 10.4 mtpa.

The sale and purchase arrangement with TotalEnergies finalises a deal announced in October for Oman LNG to extend supplies to investors including Shell and TotalEnergies for approximately 10 years beyond 2024.

TotalEnegies has actually also made a final financial investment choice (FID). for Oman's Marsa LNG project, the French oil major said.

The project will be run by a joint endeavor called Marsa. Liquefied Natural Gas. Business is 80% owned by. TotalEnergies, with the rest held by Oman state oil business OQ.

The project includes 150 million cubic feet of gas. per day, coming from the endeavor's 33.19% stake in the Mabrouk. North-East field on onshore Block 10, which will supply. feedstock for the Marsa LNG plant. The block began production in. January 2023 and reached plateu this month.

The FID permits Marsa LNG to extend its rights in Block 10. until its term in 2050, TotalEnergies stated.

The job likewise includes constructing an LNG liquefaction plant. at Sohar port, with a capacity of 1 mtpa. Production is anticipated. to begin by the very first quarter of 2028, mainly to serve the. marine fuel market. A solar plant will also be constructed to completely. cover the plant's power intake.

TotalEnergies and OQ are at an innovative phase of. discussions to collectively establish a portfolio of as much as 800 MW,. including the 300 MW solar project that will supply Marsa LNG,. TotalEnergies stated.

(source: Reuters)