HomeNewsOman LNG extends supply deals with shareholders up to 2034

Oman LNG extends supply deals with shareholders up to 2034

10/23/2023

(Reuters) - Oman LNG signed agreements to extend supplies to shareholders including Shell and TotalEnergies for up to 10 years beyond 2024, the state's Oman News Agency reported.

Oman LNG will supply about seven mtpa of LNG for about 10 years, with prices linked to global oil prices, ONA reported, citing Oman's Energy Minister Salim al-Aufi.

Oman LNG is 51% owned by the Omani government, with 30% held by Shell, 5.54% by TotalEnergies, 5% by Korea LNG, 2.77% each by Japan's Mitsubishi Corporation and Mitsui & Co, 2% by Thailand's PTTEP and 0.92% by Itochu Corporation, according to its website.

Agreements were also signed with shareholders of Qalhat LNG, which merged with Oman LNG a decade ago.

Qalhat LNG will supply about 3.8 mtpa for between four and five years, al-Aufi said, according to ONA.

Existing agreements will expire at the start of 2025 or early 2026 and the new deals were "preparatory agreements to sell liquefied natural gas beyond 2024," al-Aufi added.

The deals include new entrants to Omani LNG, including Germany and Turkey, ONA said, citing the minister.

The agreements aim to contribute to enhancing Oman's revenue from natural gas, ONA said. Oman LNG aims to "renew its strategic partnerships with various international companies" past 2024, ONA said, citing Oman LNG Chairman Talal Al Awfi, who is also chief executive of state oil firm OQ

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