Shell Gas has announced that it signed an amended shareholder’s agreement with partners in the Oman LNG LIC venture to push the liquified natural gas (LNG) business beyond 2024.
Oman in return signed various agreements to secure its gas supply until 2034. The signing ceremony was held under the patronage of H.E Eng. Salim Al Aufi, Oman’s Minister of Energy and Minerals.
Under these agreements, Shell Gas, a subsidiary of Shell plc, will remain the largest private shareholder in Oman LNG, with a 30% shareholding, and continues its role as technical adviser.
“Shell is proud of its role as the largest private shareholder, off-taker and technical adviser in Oman LNG,” said Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director.
“We believe liquefied natural gas’s (LNG) role in the energy system will continue to grow, and this milestone further demonstrates our commitment to our integrated gas business and to Oman as a key heartland to Shell,” he added.
Furthermore, based on previously signed term sheets, Shell International Trading Middle East FZE will purchase up to 1.6 million tons per annum (mtpa) of LNG from Oman LNG from 2025 to 2034, making Shell the largest LNG off-taker from Oman LNG.
Oman LNG is one of the largest investment projects in Oman. It operates a three-train plant with a production capacity of 11.4 mtpa of LNG, stated Shell in a press release.
Shell in Oman holds interests in Petroleum Development Oman (34%), Oman LNG (30%) and Shell Oman Marketing Company (49%).
In January 2023, Shell started producing gas from Mabrouk Field in Block 10, in which Shell holds 53.45% interest.