Oman LNG Reports Record Revenues in 2013

Oman LNG has reported record revenues of $4.491 billion in 2013, a rise of $149 million over the previous year.

“Through a combination of relatively stable energy prices averaging US$ 110.72 in 2013 and strict control over operating expenditure budget, Oman LNG achieved higher revenues and profits in 2013,” the company said in its annual report.

According to the annual report, the year 2013 also saw record breaking performance in other areas too. LNG production reached 8.9 million tons per annum (mtpa), up from 8.4 mtpa a year earlier.

A total of 139 cargoes were loaded from Oman LNG’s plant in Sur; 90 for Oman LNG and 49 for Qalhat LNG.

Also, 40 cargoes of natural gas liquids (NGLs) were shipped as well during the year. NGL production amounted to 267,969 tonnes in 2013.

Chairman of Board of Directors of Oman LNG and Oman’s oil minister, Mohammed bin Hamad Al Rumhy called 2013 a “new era”. “In the year 2013, our LNG industry entered a new era in its development with the integration of Oman LNG and Qalhat LNG into one entity. The many areas of similarities and indeed mutual cooperation that existed between both companies prior to the integration, present clear opportunities for growth that is expected to come from a stronger, unified establishment that has now emerged under Oman LNG.,” Al Rumhy said in the Chairman’s message.

Qalhat LNG began operations in 2005 with a single train that made up the third liquefied natural gas production unit at Qalhat in Sur. The train is operated by Oman LNG on behalf of Qalhat LNG.

Qalhat LNG has three long-term sale and purchase agreements (SPAs) for a total contracted volume of approximately 3.3 million metric tonnes per annum (mmtpa).

The agreements to supply LNG include a 20-year SPA with Spain’s Union Fenosa Gas (1.65 mmtpa), a 17-year SPA with Japan’s Osaka Gas (0.85 mmtpa) and a 15-year SPA with Mitsubishi Japan (0.8 mmtpa).

On 1st September 2013, Qalhat LNG became completely integrated with Oman LNG.