TotalEnergies has announced that it had signed an amendment to extend its partnership with Oman LNG liquefied natural gas (LNG) beyond 2024 by ten years and with Oalhat LNG by five years.
The Oman LNG liquefaction complex is located on the northeast coast of Oman. It consists of two liquefaction trains, each with a capacity of 3.8 million metric tons per year (mtpa) of LNG. Additionally, the complex is adjacent to the Qalhat LNG project, which includes one 3.8 mtpa train and is partially owned by Oman LNG. With the inclusion of the Qalhat LNG project, the site’s total production capacity reaches 11.4 mtpa.
“We are pleased to extend our partnership with Oman LNG. This LNG contributes to our supply of Europe and Asian markets and strengthens our integrated and flexible global portfolio, in line with TotalEnergies’ ambition to increase its LNG production and long-term purchases by 50% by 2030,” said Julien Pouget, Senior Vice President Middle East & North Africa, Exploration & Production at TotalEnergies.
As part of the agreement, both parties have agreed to finance investments aimed at reducing the plant’s GHG emissions during the extended period.
The LNG produced by Oman LNG contributes to TotalEnergies’ supply to European and Asian markets.
In January 2023, TotalEnergies also signed an agreement with Oman LNG to offtake 0.8 mtpa of LNG for ten years from 2025, making the company one of the main offtakers of Oman LNG’s production.
Oman LNG is majority-owned by the government of the Sultanate of Oman, holding a 51% stake. Other shareholders include Shell (30%), TotalEnergies (5.54%), Korea LNG (5%), PTTEP (2%), Mitsubishi (2.77%), Mitsui (2.77%), and Itochu (0.9%).
Qalhat LNG, on the other hand, is majority-owned by the Government of Oman (46.84%), Oman LNG (36.8%), Naturgy (7.36%), Itochu (3%), Mitsubishi (3%), and Osaka Gas (3%). TotalEnergies indirectly holds a 2.04% interest in Qalhat LNG through its stake in Oman LNG.