State-owned producer Oman LNG continues to sign supply deals and the newest customer is China’s Unipec, a unit of state-owned energy giant Sinopec.
Under the binding term sheet, Oman LNG would supply about 1 million metric tonnes per year for a period of four years to Unipec, Oman’s energy ministry said on Tuesday.
The supplies would start in 2025, it said.
Oman LNG confirmed the deal later on Tuesday saying this is the company’s first contract with a Chinese firm.
“This step comes to leverage the ever-growing partnership between Oman LNG and international energy firms, and promotes the company’s efforts to reach new markets,” it said.
8th supply deal for Oman LNG
This deal with Unipec is the 8th term sheet Oman LNG signed since December and follows the deal with Turkey’s Botas.
However, it is shorter then the previous deals which were mostly for a duration of 10 years.
Oman LNG, in which the government of Oman holds 51 percent, recently also signed term sheets with its shareholders TotalEnergies, PTT, and Shell.
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.