TotalEnergies inks deal for Oman LNG bunkering project

French energy giant TotalEnergies is moving forward with plans to develop the planned Marsa LNG bunkering project in Oman.

TotalEnergies said on Tuesday it has signed a series of agreements with Oman’s energy ministry, including for the establishment of Marsa LNG.

The firm said it has 80 percent in the integrated company, while Oman National Oil Company, OQ holds the remainder.

Marsa LNG would produce natural gas from Block 10 of the Saih Rawl gas field, with a view to subsequently develop a low-carbon LNG plant in Sohar, powered by solar electricity, for the production of LNG for bunker fuel, it said.

TotalEnergies previously said the plant in Sohar port would supply LNG as a fuel to marine vessels. The small-scale modular liquefaction plant could have one train of around 1 million tonnes per year.

Concession and gas supply deals

Under the second deal, TotalEnergies signed a concession agreement for Block 10, to develop and produce natural gas from the block.

Marsa LNG will hold a 33.19 percent interest in the block, together with its partners OQ and operator Shell Integrated Gas Oman.

TotalEnergies’ production from Block 10 would reach about 24,000 boe/d in 2023, it said.

In addition to these two deals, TotalEnergies also signed a gas sales agreement under which Marsa LNG will sell natural gas from Block 10 to the government of Oman.

The deal includes a duration of 18 years or until the start-up of the Marsa LNG plant, according to TotalEnergies.

TotalEnergies already participates in the Oman LNG complex in Qalhat that includes three trains with a capacity of about 10.4 million tonnes per year.

It has a 5.54 percent stake in Oman LNG. The government of Oman holds 51 percent in Oman LNG while Shell has a 30 percent stake. 

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