Oman LNG inks 10-year SPA with Shell

State-owned producer Oman LNG has signed a 10-year sales and purchase agreement with a unit of LNG giant Shell.

Under the SPA, Oman LNG will supply Shell International Trading Middle East (SITME) with 1.6 million metric tonnes per annum of LNG, it said on Wednesday.

Oman LNG said the long-term deal will start in 2025.

Oman LNG announced in January 2023 it signed a binding term sheet with Shell for 0.8 mtpa of LNG per year and after that it signed another binding term sheet with Shell in August for additional 0.8 mtpa.

The two firms probably converted these two term sheets into a SPA for a total volume of 1.6 mtpa of LNG.

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

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

This week, Oman LNG also signed a 10-year SPA for 0.8 mtpa of LNG with Japan’s Jera, and the LNG producer and German gas importer Securing Energy for Europe (SEFE) recently also finalized their previously announced LNG deal for 0.4 million tonnes per annum of LNG between 2026 and 2029.

Oman LNG 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.

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