TotalEnergies Extends Partnership with Oman LNG

  • TotalEnergies signed an agreement with Oman LNG to offtake 0.8 million tons per annum (mtpa) of LNG for ten years from 2025.
  • The Oman LNG liquefaction complex comprises two liquefaction trains, each with a 3.8 mtpa of LNG capacity.

TotalEnergies has amended an agreement to extend its partnership with Oman LNG, an Omani liquefied natural gas (LNG) joint venture in which the company holds a 5.54 per cent stake. Under the agreement, TotalEnergies is extending its interest in Oman LNG by ten years and in Qalhat LNG by five years, both beyond 2024, the company said in a news release today.

In January, TotalEnergies signed an agreement with Oman to offtake 0.8 million tons per annum (mtpa) of LNG for ten years from 2025, making it one of the main off-takers of Oman LNG production. In addition, the French energy major said that the parties agreed to finance investments to reduce the plant’s greenhouse gas emissions during the extension. Located on the northeast coast of Oman, the Omani LNG liquefaction complex comprises two liquefaction trains, each with a capacity of 3.8 mtpa of LNG. It is adjacent to the Qalhat LNG project, which consists of one 3.8 mtpa train in which it holds a stake. Also, the site’s total production is 11.4 mtpa, according to the release.

TotalEnergies Senior Vice President Middle East & North Africa, Exploration & Production Julien Pouget said, “We are pleased to extend our partnership with Oman LNG. This LNG contributes to our supply of European and Asian markets and strengthens our integrated and flexible global portfolio. Furthermore, it aligns with TotalEnergies’ ambition to increase its LNG production and long-term purchases by 50 per cent by 2030”.

In October, Shell Gas BV, a subsidiary of Shell plc, also signed an amended agreement to extend its partnership with the firm. Omani signed various agreements to secure its gas supply until 2034. Under these agreements, Shell Gas will remain the largest private shareholder in the company, with a 30 per cent interest, and will continue its role as a technical adviser to the state-owned project. Shell International Trading Middle East FZE signed an agreement to purchase up to 1.6 million metric tons per annum of LNG from the company from 2025 to 2034, making Shell the largest LNG off-taker from Omani.

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