Oman LNG inks crucial shareholders and gas supply agreements

Business Monday 23/October/2023 17:26 PM
Oman LNG inks crucial shareholders and gas supply agreements

Muscat: Oman LNG, a joint venture of Oman Investment Authority (OIA), signed a crucial shareholders and gas supply agreement.

These agreements solidify Oman LNG's position as a key player in the global LNG market and demonstrate its commitment to long-term growth and sustainability.

Amongst the agreements signed are Oman LNG’s Shareholders Agreement, Qalhat LNG’s Shareholders Agreement, as well as the Gas Supply Agreement between Oman LNG and the Integrated Gas Company (IGC) for the supply of feed gas to Oman LNG.
The agreements underscore the company’s efforts to maximise returns and optimise further revenue generation through such sales.

Oman LNG, strengthened by its reputation as a trusted worldwide energy supplier, delivers its commitments to the nation’s economic development and the largest international gas venture with worldwide market access.

Eng. Salim Nasser Al Aufi, Minister of Energy and Minerals said, “Oman LNG’s key agreements reaffirm Oman’s reputation as a reliable and credible LNG supplier on an international scale. It comes to highlight Oman LNG’s role in fostering global energy cooperation through developing partnerships with major international firms while optimising the utilisation of the natural resources as per Oman Vision 2040.”
The importance of these agreements revolves around their role in bolstering the national Gross Domestic Product (GDP) while contributing to economic growth and fostering partnerships to attract direct foreign investments.

Based on these agreements, Oman LNG’s shareholding structure will continue with Oman Investment Authority, Shell Gas BV, Total Energies, Korea LNG, Mitsui & Co, Mitsubishi Corporation, PTT Exploration and Production, as well as ITOCHU Corporation.

Qalhat LNG’s shareholding will continue with Oman Investment Authority, Oman LNG, ITOCHU Corporation and Mitsubishi Corporation.

On his turn, Abdulsalam Mohammed Al Murshidi, President of Oman Investment Authority (OIA), pointed out that, “The signing of the agreements for Oman LNG and Qalhat LNG does not only boost economic diversification efforts and maximise returns from OIA investments but also cement Oman's position as an attractive destination for foreign investment. By fostering strategic partnerships with major energy international firms, we are contributing to economic development and positioning Oman as a global player in the energy sector. These agreements are a testament to our commitment to sustainable growth and the optimal utilization of our natural resources.”

Meanwhile, Talal Hamid Al Auf, Chairman of Oman LNG said, “As we renew our partnerships with key international energy firms, these key agreements have expanded our market and reshaped our business model to deliver value for Oman and all our customers. The key agreements are also crucial for Oman LNG’s Beyond 2024 Plan as it adapts to a shifting energy landscape and rapidly expands the LNG market.”

The recently signed agreements mark a significant milestone towards Oman LNG’s strategic roadmap to continue beyond the existing agreements. It complements the company’s latest achievement of completing the global marketing campaign, a milestone that involved the signing of numerous binding term sheet agreements to deliver 10.4 million metric tonnes per annum (mtpa) of LNG starting in 2025.

Hamed Mohammed Al Nu’amani, CEO of Oman LNG said, “The signing of these key shareholding and gas supply agreements testifies to our robust strategic partnerships, unlocking new market opportunities and capabilities to continue adding value in Oman and beyond. It sustains our position as the largest gas contributor to the Sultanate of Oman’s GDP.”

The new shareholding agreements are essential components of Oman LNG’s Beyond 2024 plan, which in full swing, will ensure top quartile performance of the assets across the value chain from Central Oman gas fields to the LNG facilities in Sur.