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.

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