Oman’s liquefied natural gas (LNG) company Oman LNG will supply energy giant bp with one million metric tonnes per annum (mtpa) of LNG for nine years, according to a new sales and purchase agreement signed by the companies.
Signed yesterday, November 21st, the deal follows on from an agreement inked in August 2023 between Oman LNG and German firm Securing Energy for Europe to supply 400,000 tonnes of LNG for four years from 2026.
Oman LNG has also signed a ten year 800,000 tonnes per annum deal with TotalEnergies and a nine-year supply agreement with Thailand’s Petroleum Authority of Thailand starting in 2026.
Commenting on its newest supply deal, Hamed Al-Naumani, CEO of Oman LNG, said, “the importance of this agreement is to create new opportunities to renew the Sultanate of Oman’s presence on the global energy trade map, noting that the agreement will contribute to increasing LNG revenues, supplying the national economy, and raising the gross domestic product.”
Equipped with an operational capacity of 10.4 mtpa as of April 2023, Oman held 11.3% of the LNG export market share in 2022, according to the IGU World LNG Report 2023.
The Middle East is set to spend as much as $120bn to increase gas production by 14 billion standard cubic feet per day (bcfd) to 86 bcfd by 2030, revealed a report released earlier this year by Wood Mackenzie.
“The Middle East can be part of the solution for the global gas markets as the region continues to ramp up production from its gigantic gas reserves,” said Alexandre Araman, Principal Analyst for Middle East Upstream at Wood Mackenzie.
Qatar LNG exports should reach 126 mtpa by 2030, while Abu Dhabi should be able to export 15.4 mtpa after its new LNG facility comes onstream in 2028.
Although gas accounts for barely 35% of the Middle East production mix, it generates more than 70% of the value. Half ot the value figures is held by ExxonMobil, Shell and TotalEnergies.
Read More: Oman LNG and bp commit to nine-year multi-million tonne LNG supply deal | LNG