Oman has signed an agreement with Germany’s SEFE company to provide Europe with liquefied natural gas (LNG) for four years.
According to this binding term-sheet agreement, Oman LNG will supply 0.4 million metric tonnes per annum (mtpa) of LNG to Secure Energy for Europe (SEFE) starting in 2026.
Along with reinforcing Oman’s reputation as a trusted and reliable supplier of LNG, this contract, the first to be signed with Germany, would enable Oman to approach the European markets.
“This agreement forms a milestone within the company’s efforts to add value to Oman’s economy through growth and collaborations,” said Mahmoud Abdulsatar Al Balushi, Chief Commercial Officer of Oman LNG.
On his part, Egbert Laege, CEO of SEFE expressed pleasure in signing this contract between the two companies, noting that SEFE is proud to lead the way to enhance collaboration between Oman and the European countries.
LNG is the biggest of Oman’s revenues after oil. Oman LNG is a joint venture company with the government of Oman holding a majority stake of 51% and UK supermajor Shell holding a 30% interest. Other key stakeholders include TotalEnergies, Korea LNG, Mitsubishi Corporation, Mitsui & Co, PTTEP, and Itochu.
Oman LNG has signed multiple gas supply agreements with international companies in recent months. In December 2022, a group of three Japanese companies signed long-term LNG import deals with Oman LNG for 2.35 mtpa of gas supplies.
In January 2023, meanwhile, Oman signed binding term-sheet agreements with Thailand’s PTT Global LNG and with French giant TotalEnergies to supply a total of 1.6 mtpa of LNG starting in 2025.
