Oman LNG pens supply deals with OQ Trading, Shell

State-owned producer Oman LNG has signed deals to supply liquefied natural gas to OQ Trading and Shell.

Oman LNG announced the signing of the two binding term sheets on Wednesday.

Under the term sheet, Oman’s state-owned firm OQ Trading will receive about 750,000 million tonnes annually for a period of fours years, starting in 2026, it said.

OQ Trading recently signed a deal with Bangladesh’s state-owned company Petrobangla to supply the latter with LNG.

Under the SPA signed on June 19, OQT, previously known as Oman Trading International, will supply 0.25-1.5 million tonnes per year of LNG to Bangladesh over 10 years, starting in 2026.

Shell says to become Oman LNG’s largest buyer post 2024

As per the second deal, Oman LNG will supply Shell International Trading Middle East, a unit of LNG giant Shell, with 800,000 million tonnes of LNG annually over a period of 10 years, starting in 2025.

Shell has been a shareholder in Oman LNG with a 30 percent stake since its inception.

Oman LNG announced in January it has signed a 10-year deal with Shell for 0.8 million tonnes of LNG per year.

According to a LinkedIn post by Walid Hadi, Shell’s head in Oman, this term sheet follows the first deal in January for additional volumes from Oman LNG.

With these two deals, Shell will become Oman LNG’s largest off-taker post 2024, he said.

“Today marks an important milestone in the history of Oman LNG with the successful completion of the renewal of its contract post 2024. This was achieved in less than 12 months since the kickoff of its global marketing campaign,” Hadi said.

Oman LNG deals

Oman LNG signed at least ten contracts since December last year.

Prior to these two contracts, Oman LNG signed a deal this month with German gas importer Securing Energy for Europe (SEFE) and a deal earlier this year with China’s Unipec, a unit of state-owned energy giant Sinopec.

Oman LNG, in which the government of Oman holds 51 percent, also signed term sheets with Turkey’s Botas and its shareholders TotalEnergies and PTT.

Also, Oman LNG signed key term sheets in December to supply LNG to Japan’s Jera, Mitsui, and Itochu.

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

Due to debottlenecking, the company’s complex now has a production capacity of around 11.4 mtpa.

Most Popular

Canada’s Cedar LNG names FLNG

Canada’s Cedar LNG, a joint venture of Canada’s Pembina Pipeline and the Haisla Nation, has picked a name for its floating LNG facility, which will be located in the traditional territory of the Haisla Nation, on Canada’s West Coast.

NextDecade, Jera seal 20-year LNG SPA

Japan's Jera has signed a 20-year deal to buy liquefied natural gas from the planned fifth train at NextDecade's Rio Grande LNG facility in Texas.

Sempra gets non-FTA approval for Port Arthur LNG expansion

Sempra Infrastructure, a unit of Sempra, has received non-FTA approval from the US Department of Energy for the second phase of its Port Arthur LNG export project in Texas.

More News Like This

Shell shareholders re-elect CEO Wael Sawan

Wael Sawan will continue to lead London-based LNG giant Shell following shareholder voting at the company's annual general meeting on Tuesday.

Oman LNG inks supply deal with Vitol

State-owned producer Oman LNG has signed a sales and purchase agreement with energy trader Vitol.

Singapore’s FueLNG wraps up 400th STS bunkering operation

Singapore’s FueLNG, a joint venture consisting of Shell and Seatrium, has completed its 400th ship-to-ship (STS) LNG bunkering operation. FuelLNG delivered LNG to BYD Shenzen, which is said to be the world’s largest LNG-fueled car carrier.

Peru LNG terminal shipped three cargoes in April

Peru LNG’s liquefaction plant at Pampa Melchorita has shipped three liquefied natural gas cargoes in April due to restrictions on the transportation system, according to operator Hunt Oil.