Shell Gas extends partnership with Oman LNG beyond 2024

Shell Gas BV, an affiliate of Shell plc, along with its consortium in the Oman LNG LLC venture, has endorsed an updated shareholders’ pact for Oman LNG, ensuring the venture persists past 2024. Further solidifying its future, Oman LNG signed multiple contracts to guarantee its gas reservoirs remain active till 2034. This pivotal signing event was graced by the presence of Salim Al Aufi, Oman’s Minister of Energy and Minerals.

Shell Gas Retains Pivotal Role in Oman LNG

According to the detailed accords, Shell Gas will sustain its paramount position as the foremost private stakeholder in Oman LNG, securing a 30% share. Shell Gas’s invaluable role as a technical adviser remains unchanged. Expressing the magnitude of this association, Zoë Yujnovich, the Integrated Gas and Upstream Director at Shell, stated, “Shell is proud of its role as the largest private shareholder, off-taker and technical adviser in Oman LNG. 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.”

Shell: A Foremost Off-taker of Oman LNG’s Supplies

Complementing past accords, Shell International Trading Middle East Limited FZE is slated to procure up to 1.6 million tonnes annually of LNG from Oman LNG, spanning from 2025 to 2034. This arrangement propels Shell to the position of the chief LNG off-taker from Oman LNG.

Founded in 1994 via a Royal decree post the revelation of abundant gas volumes in the Sultanate, Oman LNG stands as one of Oman’s monumental investment initiatives, operating an expansive three-train plant capable of producing 11.4 million tonnes of LNG annually.

Shell’s historical engagement in Oman includes key stakes in diverse entities such as Petroleum Development Oman, Oman LNG, and Shell Oman Marketing Company. Apart from these, Shell has been a visionary in Oman’s renewable energy landscape, evident from their Solar into Schools programme and the Solar Sohar Qabas renewable power initiative.

With the 2023 commencement of gas extraction from Mabrouk Field in Block 10 and anticipated contracts from 2025, Shell’s role as a primary LNG buyer from Oman only stands to intensify.