Oman to develop new LNG train to boost production

Oman will develop an additional LNG train with a capacity of 3.8mn tonnes/year at the Qalhat Industrial Complex in the South A’Sharqiyah governorate, state-owned Oman News Agency (ONA) reported on July 27.

The expansion will boost Oman’s LNG production capacity to 15.2mn tonnes/year. The government is currently finalising the front-end engineering design (FEED) study for this new LNG train. The project is expected to be completed and operational by 2029, ONA said.

"The addition of a new LNG train is a key component of Oman's strategy to solidify its position as a leading producer and exporter of liquefied natural gas in the global market," said Salem Al Aufi, minister of energy and minerals. "By leveraging our existing infrastructure and resources, we aim to capitalise on the growing demand for clean energy sources while also contributing to the diversification and long-term sustainability of Oman's economy."

State-owned Oman LNG currently operates three LNG trains and produced 11.5mn tonnes of LNG last year. In 2023, Oman LNG's total revenue amounted to $4.9bn, down from $5.8bn in the preceding year. The company delivered 173 LNG cargoes in 2023, marginally lower than the 176 cargoes dispatched in 2022.

A significant portion of Oman LNG's cargo deliveries in 2023—approximately 94%—was executed under long-term contractual agreements. The remaining cargoes were allocated to the spot market. 

Oman LNG is primarily owned by the government of Oman with a 51% stake, alongside ownership shares held by Shell (30%), Total (5.4%), Kogas (5%), and various Japanese and Omani firms holding stakes under 3%. It has been actively securing LNG supply agreements in recent months, having signed deals with TotalEnergies, Botas, Japan's Jera and global energy giant Shell.

Oman LNG last year signed agreements to extend supplies to shareholders including Shell and TotalEnergies for up to 10 years beyond 2024.