June 13, 2024
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OIL & GAS RENEWABLE ENERGY

Oman LNG and TotalEnergies Sign Supply Deal

Oman LNG and TotalEnergies, one of its shareholders, have on Monday announced the signing of a sale and purchase agreement to supply 800,000 metric tons per year of liquefied natural gas. In a separate statement, the companies said that TotalEnergies, which owns 5.54% of Oman LNG, will be supplied by the company for 10 years from 2025.

Last week, Oman LNG signed an agreement with Turkey’s state gas grid operator Botas to supply about 1 million tons per annum (mtpa) of LNG for 10 years from 2025. It also signed a 10-year deal with Shell  to supply 1.6 mtpa from 2025.

TotalEnegies has also made a final investment decision (FID) for Oman’s Marsa LNG project, the French oil major said. The project will be run by a joint venture named Marsa Liquefied Natural Gas. The business is 80% owned by TotalEnergies, with the rest held by Oman state oil company OQ.

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

“The FID allows Marsa LNG to extend its rights in Block 10 until its term in 2050,” TotalEnergies said. As gathered by Reuters.

Also, the project will include, building an LNG liquefaction plant at Sohar port, with a capacity of 1 mtpa. Expected date of starting production is in first quater of 2028, mainly to serve the marine fuel market. A solar plant will also be built to fully cover the plant’s power consumption.

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