TotalEnergies has signed an amendment to extend its partnership with Oman LNG, an Omani liquefied natural gas (LNG) joint venture in which the company holds a 5.54% stake.
The Oman LNG liquefaction complex, which is on the northeast coast of Oman, consists of two liquefaction trains, each with a capacity of 3.8 million metric tons of LNG per year (Mtpa). It is next to the Qalhat LNG project, which includes one 3.8 Mtpa train, and in which Oman LNG has a stake. Consequently, the site’s total production capacity reaches 11.4 Mtpa.
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TotalEnergies is expanding its interest in Oman LNG beyond 2024 for an additional ten years, and in Qalhat LNG for five more years. A part of this agreement involves the parties consenting to finance investments aimed at curbing the plant’s greenhouse gas (GHG) emissions during the extended period. Earlier in January 2023, TotalEnergies had also reached an agreement with Oman LNG to offtake 0.8 Mtpa of LNG for ten years starting from 2025, positioning the company as a principal offtaker of Oman LNG’s output.
Julien Pouget, Senior Vice President Middle East & North Africa, Exploration & Production at TotalEnergies, said “This LNG contributes to our supply of Europe and Asian markets, and strengthens our integrated and flexible global portfolio, in line with TotalEnergies’ ambition to increase its LNG production and long-term purchases by 50% by 2030.”
The shareholder composition of Oman LNG includes a majority stake by the Government of the Sultanate of Oman at 51%, while other shareholders are Shell (30%), TotalEnergies (5.54%), Korea LNG (5%), PTTEP (2%), Mitsubishi (2.77%), Mitsui (2.77%), and Itochu (0.9%). Similarly, the Qalhat LNG’s majority stakeholder is the Government of Oman at 46.84%, followed by Oman LNG (36.8%), Naturgy (7.36%), Itochu (3%), Mitsubishi (3%), and Osaka Gas (3%). Through its stake in Oman LNG, TotalEnergies additionally holds an indirect interest in Qalhat LNG of 2.04%.
