Oman LNG and TotalEnergies Forge LNG Supply Deal and Embark on Marsa LNG Project

Oman LNG and TotalEnergies [TTE:FP] have inked a substantial sale and purchase agreement, solidifying a deal to supply 800,000 metric tons per year of liquefied natural gas (LNG). TotalEnergies, holding a 5.54% stake in Oman LNG, is set to receive the supply for a decade starting from 2025. This agreement follows Oman LNG’s recent deals with Turkey’s Botas and Shell for LNG supply, further cementing its position in the global LNG market. Founded in 1994, Oman LNG is majority-owned by the Omani government and has established itself as a significant player with a production capacity of 10.4 million tons per annum. The finalized deal with TotalEnergiesmarks a continuation of Oman LNG’s efforts to extend supply contracts with its shareholders beyond 2024, ensuring long-term stability in its operations.

In parallel, TotalEnergies has also greenlit the Marsa LNG project in Oman, signaling a significant investment in the region’s LNG infrastructure. The project, operated by a joint venture majority-owned by TotalEnergies and OQ, involves the development of a liquefaction plant at Sohar port with a capacity of 1 million tons per annum. Scheduled to commence production by the first quarter of 2028, the plant aims to cater primarily to the marine fuel market. Additionally, the project includes plans for a solar plant to power the LNG facility, showcasing TotalEnergies’ commitment to sustainable energy solutions. Advanced discussions between TotalEnergies and OQ for joint development projects, including a substantial solar project, indicate a broader partnership focused on enhancing Oman’s energy landscape.

Sources:

https://www.reuters.com/markets/deals/oman-lng-signs-supply-deal-with-totalenergies-2024-04-22/