TotalEnergies and Oman LNG amend agreement, extending LNG ventures
TotalEnergies has amended its existing partnership with Oman LNG, ensuring the French multinational energy company will maintain its 5.54% stake in the Omani enterprise. The northeast coast of Oman is home to the Oman LNG liquefaction complex, equipped with two trains boasting a combined annual production capacity of 7.6 million metric tons (Mtpa) of liquefied natural gas (LNG).
Long-term LNG Supply Secured: TotalEnergies and Oman LNG Deepen Ties
Adjacent to the Oman LNG facility lies the Qalhat LNG project, with an additional 3.8 Mtpa train, totaling the site’s output to an impressive 11.4 Mtpa. The extension agreement ensures TotalEnergies’ involvement in Oman LNG beyond 2024 for an additional decade and in the Qalhat LNG venture for five more years. Moreover, the accord includes financial commitments to invest in measures aimed at reducing greenhouse gas (GHG) emissions during this extended period.
In January 2023, TotalEnergies expanded its presence in the region by securing an agreement to offtake 0.8 Mtpa of LNG from Oman LNG starting from 2025 for a span of ten years. This deal positions TotalEnergies as a significant offtaker and contributor to the Omani LNG production industry.
TotalEnergies: Enhancing Global LNG Portfolio
Julien Pouget, Senior Vice President Middle East & North Africa, Exploration & Production at TotalEnergies, affirmed the company’s strategy, “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.”
Oman LNG’s ownership structure is majorly controlled by the Government of the Sultanate of Oman, holding a 51% stake, with the rest distributed among prominent international energy corporations, including Shell, Korea LNG, PTTEP, Mitsubishi, Mitsui, and Itochu. Through its investment in Oman LNG, TotalEnergies also indirectly holds a share in the Qalhat LNG project, bolstering its influence and stake in the global LNG market.
As TotalEnergies fortifies its commitment to extended and environmentally conscious LNG production with Oman LNG, the partnership is set to play a pivotal role in meeting the rising global demand for cleaner energy solutions while contributing to the economic growth of the Sultanate of Oman.