State-owned producer Oman LNG and German gas importer Securing Energy for Europe (SEFE) have finalized their previously announced liquefied natural gas supply deal.
The two firms signed the binding term sheet in August last year for the supply of LNG from Oman LNG’s plant in Qalhat.
SEFE said in a statement on Thursday that it has now signed a sales and purchase agreement with Oman LNG following the binding term-sheet last year.
Under the deal, SEFE will buy 0.4 million tonnes per annum of LNG between 2026 and 2029.
The contract marks a milestone in the strategic energy partnership between Germany and Oman, as SEFE is the first German company to purchase Omani LNG, it said.
Egbert Laege, CEO of SEFE said this partnership “diversifies our portfolio and supports our goal to provide Europe with a secure energy supply.”
“We look forward to this being the first of many agreements and to developing a trusting partnership in the hydrogen economy in the medium and long term,” Laege added.
SEFE, previously known as Gazprom Germania, recently also signed a larger supply deal with UAE’s Adnoc for supplies from the proposed LNG terminal in Al Ruwais.
Under this deal, SEFE Marketing & Trading Singapore will buy 1 mtpa of LNG for a period of 15 years.
As per Oman LNG, it 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.
Oman LNG, in which the government of Oman holds 51 percent, was quite busy last year and it signed shareholding deals with international companies, including Shell and TotalEnergies.
These agreements followed the completion of Oman LNG’s large marketing campaign aimed at renewing all of its contracts post 2024.