Oman LNG, Qalhat LNG Consider Merger Plans

Oman’s two LNG exporters, Oman LNG and Qalhat LNG are mulling over the possibility of merging with each other in order to reduce costs.

Brian Buckley, CEO of Oman LNG, told Muscat Daily that the proposal is currently at very early stage and shareholders have been given 'preliminary evaluations,' prior to further discussions. He said exact benefits of the merger are yet to be quantified.

Despite the potential upheaval involved in bringing the two companies together, Buckley said current agreements with importers will remain unaffected by any potential merger.

He said, “The government and the two companies have given assurances to the existing buyers of LNG from Oman that any merger of the management of the two companies will in no way affect the commitments made under their long-term sales and purchase agreements with Oman LNG and Qalhat LNG.”

Major long-term overseas buyers of Oman LNG's gas are Korea Gas Corporation, Osaka Gas of Japan and Itochu Corporation. Overseas buyers from Qalhat LNG include Spain's Union Fenosa Gas, Mitsubishi Corp and Osaka Gas.