Oman LNG pens supply deal with Japan’s Jera

State-owned producer Oman LNG has signed a key term sheet to supply liquefied natural gas to Japan’s Jera from its complex in Qalhat, Sur.

Based on the term sheet, Japan’s LNG trader and power generation firm, Jera, will purchase up to 12 cargoes or about 0.8 million tons per year from Oman LNG from 2025 for a period of 10 years.

“LNG procurement competition has been intensifying and thus, stable procurement of fuel in a timely manner in line with the domestic electricity supply-demand situation is needed to secure a stable supply of energy in Japan,” Jera said in a statement on Tuesday.

“This is an FOB contract, which has a high flexibility and is expected to enhance capability to respond uncertainties in the domestic LNG supply and demand,” the firm said.

Three LNG supply deals

Oman LNG signed supply deals with three Japanese firms. Besides Jera, the other firms are Mitsui and Itochu, according to a social media post by Oman’s energy ministry.

The yearly supplies for the three firms total 2.35 mtpa of LNG and would start in 2025, the ministry said.

In November, Oman LNG loaded the 3000th cargo at its complex in Qalhat, Sur since 2000.

The state-owned firm operates three LNG trains in Qalhat with a nameplate capacity of 10.4 mtpa sourcing gas from the central Oman gas field complex.

Moreover, it mostly supplies LNG under long-term deals with Kogas, BP, Itochu, Osaka Gas, and Naturgy.

Oman’s LNG exports rose 8 percent in the first half of this year to 91 cargoes due to debottlenecking. The firm delivered in total 163 cargoes or 10.6 mtpa of LNG last year.

The company’s complex now has a production capacity of around 11.4 mtpa.

The government of Oman holds 51 percent in Oman LNG while energy giant Shell has a 30 percent stake. Other shareholders include TotalEnergies, Korea LNG, PTTEP, Mitsubishi, Mitsui, and Itochu.

Most Popular

Aramco eyes large LNG portfolio

Aramco's long-term ambition is to have a portfolio of 20 million tonnes per annum (mtpa) of LNG capacity, according to Aramco’s CEO, Amin Nasser.

Argentina’s Southern Energy takes FID on second FLNG

Argentina's Southern Energy takes FID on second FLNG

Energy Transfer in advanced talks to sell remaining Lake Charles LNG volumes

Texas-based Energy Transfer is in advanced discussions for the sale of the remaining offtake volumes from its proposed Lake Charles LNG export facility in Louisiana, according to its management.

More News Like This

Cheniere, Jera seal long-term LNG SPA

US LNG exporter Cheniere has signed a long-term LNG sale and purchase agreement with Japan's Jera.

Sempra Infrastructure, Jera seal 20-year LNG SPA

US LNG exporter Sempra Infrastructure, a unit of Sempra, has signed a 20-year LNG supply contract with Japan's Jera for volumes from the Port Arthur LNG Phase 2 development project in Texas.

Cameron LNG hits new milestone

Sempra Infrastructure, a unit of Sempra, and its partners have shipped the 1,000th cargo of liquefied natural gas from the Cameron LNG export plant in Louisiana since 2019.

Oman LNG delivered 181 cargoes in 2024

State-owned Oman LNG delivered 181 cargoes of liquefied natural gas from its Qalhat complex in 2024, up by eight cargoes compared to the year before, while its revenue increased to $6.5 billion.