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.
