Oman LNG Facility and Infrastructure Overview

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Aerial shot of a gas terminal featuring LNG storage tanks and tanker ships in turquoise waters.
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Located in Qalhat, Oman, the Oman LNG facility is a major player in the country's energy sector. The facility is situated on a 1.5 square kilometer site and is operated by Oman LNG Company, a joint venture between the government of Oman and other international partners.

The facility has a production capacity of 10.2 million tons per annum, making it one of the largest LNG facilities in the world. This is achieved through the processing of 2 billion standard cubic feet of gas per day.

The facility's infrastructure is designed to handle the transportation of LNG to various destinations around the world. This is made possible through a 51 kilometer long pipeline that connects the facility to the port of Qalhat, where LNG carriers can dock and load cargo.

Location

The location of Oman LNG's facilities is a crucial aspect of its operations. Oman is the country where you can find these facilities.

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Debottlenecking Project is located in Qalhat, Ash Sharqiyah, Oman. The exact coordinates of this location are 22.6586, 59.40748 (WGS 84).

T1, T2, T3, and T4 are also located in Qalhat, Ash Sharqiyah, Oman, with the exact same coordinates as the Debottlenecking Project.

Here's a list of the locations mentioned:

  • Debottlenecking Project: Qalhat, Ash Sharqiyah, Oman (22.6586, 59.40748)
  • T1: Qalhat, Ash Sharqiyah, Oman (22.6586, 59.40748)
  • T2: Qalhat, Ash Sharqiyah, Oman (22.6586, 59.40748)
  • T3: Qalhat, Ash Sharqiyah, Oman (22.6586, 59.40748)
  • T4: Qalhat, Ash Sharqiyah, Oman (22.6586, 59.40748)

Background

Oman is a country located in the Middle East, bordered by the United Arab Emirates to the north and Yemen to the south.

The country has a long coastline along the Arabian Sea, which has played a significant role in its economic development.

Oman's economy has grown rapidly in recent years, driven by its oil and gas reserves.

The country's strategic location has made it an important hub for international trade and commerce.

Oman LNG is a major player in the country's energy sector, with a significant impact on the economy.

The company was established in 1994 to develop and operate the Qalhat LNG project.

Oman LNG has a production capacity of 10.4 million tons per year, making it one of the largest LNG producers in the world.

Ownership and Shareholders

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Oman LNG is owned by a diverse group of companies, with the Government of Oman holding a significant 51% stake in the company.

The facility type for the Debottlenecking Project, T1, T2, and T3 is export, and they are all operating.

The ownership structure of Oman LNG includes Mitsui Group, TotalEnergies SE, PTTEP, Korea LNG, ITOCHU Corp, Shell PLC, and Mitsubishi Corp, among others.

Here's a breakdown of the ownership percentages for each facility:

Oman LNG has also signed shareholding deals with international companies, including Shell and TotalEnergies, which has helped the company expand its operations beyond 2024.

LNG Supply and Details

Oman LNG has secured sales term commitments up to 10.4 mtpa through term sheet agreements with several buyers and shareholders.

These agreements have expanded the company's footprint into new regions across Asian and European markets.

Oman LNG signed a 10-year SPA with TotalEnergies for 0.8 mtpa of LNG from 2025, and another with Botas for 1 mtpa of LNG.

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Additionally, Oman LNG signed a 10-year SPA for 1.6 mtpa of LNG with Shell and a 10-year SPA for 0.8 mtpa of LNG with Japan's Jera.

Here are some key LNG supply agreements:

  • Oman LNG signed a 10-year SPA with TotalEnergies for 0.8 mtpa of LNG from 2025.
  • Oman LNG signed a 10-year SPA with Botas for 1 mtpa of LNG.
  • Oman LNG signed a 10-year SPA with Shell for 1.6 mtpa of LNG.
  • Oman LNG signed a 10-year SPA with Jera for 0.8 mtpa of LNG.
  • Oman LNG and Securing Energy for Europe (SEFE) finalized their LNG deal for 0.4 mtpa of LNG between 2026 and 2029.

Lng Supply Details

Oman LNG has secured a significant amount of LNG supply commitments through various agreements with international companies and buyers.

One notable deal is with TotalEnergies, where Oman LNG signed a 10-year SPA for 0.8 mtpa of LNG from 2025.

Another agreement was made with Botas, securing a 10-year SPA for 1 mtpa of LNG.

Oman LNG also signed a 10-year SPA with Shell for 1.6 mtpa of LNG, and a 10-year SPA with Japan's Jera for 0.8 mtpa of LNG.

A separate deal was finalized with Securing Energy for Europe (SEFE) for 0.4 mtpa of LNG between 2026 and 2029.

Oman LNG will also source LNG from the Mabrouk North-East field on onshore Block 10, Oman, with a supply of 150,000 cubic feet per day.

Production in Block 10 commenced in January 2023 and reached its plateau in April 2024, allowing Marsa LNG to extend its rights in Block 10 until 2050.

Power Supply Details

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The power supply for this LNG plant is quite impressive. A dedicated 300MWp photovoltaic (PV) solar plant will be established to meet the annual power needs of the LNG plant.

This solar plant will enable a substantial reduction in greenhouse gas emissions. The project will be powered exclusively by solar energy.

The electrical transmission line will consist of a buried electrical cable stretching approximately 3.5km. It will link the LNG substation to the existing substation operated by the Oman Electricity Transmission Company (OETC) within Sohar Port.

Infrastructure and Projects

Oman LNG's infrastructure is expanding to meet growing demand. The company plans to add a fourth train at its Qalhat LNG complex, which will have an output capacity of 3.8 million tonnes a year.

The new train is expected to be commissioned in 2029 and will increase Oman LNG's total production capacity to 15.2 million tonnes a year. This will be the fourth LNG train at the Qalhat LNG complex, with the existing three trains having a nameplate capacity of 10.4 million tonnes a year.

Debottlenecking efforts have already increased the company's production capacity to 11.4 million tonnes a year, and the new train will further boost this capacity.

Add Train at Qalhat Complex

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The Qalhat complex in Oman is getting a major upgrade with the addition of a fourth LNG train. This train will have an output capacity of 3.8 million tonnes a year.

Oman LNG will perform the preliminary engineering study for the new train, which is expected to be commissioned in 2029. By then, it will increase Oman LNG's total production capacity to 15.2 million t/y.

The Qalhat complex already has three LNG trains, with a nameplate capacity of 10.4 million t/y. Debottlenecking projects have helped increase this capacity to about 11.4 million t/y.

Oman LNG is a joint venture between the sultanate's Energy & Minerals Ministry and foreign stakeholders, including Shell, TotalEnergies, and Mitsubishi Corporation.

Iran Pipeline to LNG

The Iran Pipeline to LNG project is a significant undertaking that has been in the works for several years. It involves connecting Iran's gas reserves with Oman's consumers through a pipeline, with Oman's LNG plant potentially re-exporting the gas.

The project was valued at $60 billion over 25 years, with Iran's oil minister stating in 2017 that an additional $1.2 billion investment would be needed to complete the pipeline.

Oman and Iran initially signed an agreement to supply gas through the pipeline in 2013.

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Agreements and Contracts

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TotalEnergies has secured a significant offtake agreement with Oman LNG, committing to acquire 0.8 million tonnes per annum of LNG for ten years starting from 2025.

Technip Energies was awarded the engineering, procurement and construction (EPC) contract of the natural gas liquefaction train, a crucial component of the project.

SIPC will be responsible for the substructure maintenance and mooring operations of the export jetty, ensuring the safe and efficient transportation of LNG.

CB&I, a wholly-owned subsidiary of McDermott, was awarded an EPC contract in May 2024 to supply a full containment concrete LNG storage tank for the project, a vital piece of infrastructure.

Iran and Qatar LNG

Iran and Qatar LNG have been major players in the global market for decades. They have consistently been among the top LNG exporters in the world, with Iran's LNG exports reaching a peak of 10 million tons in 2011.

Iran's LNG industry has been impacted by international sanctions, which have limited its ability to export LNG. This has had a significant impact on the country's economy.

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Qatar, on the other hand, has continued to increase its LNG exports, with its production reaching a record high of 77 million tons in 2015. Its LNG exports account for over 50% of the country's total gas exports.

Qatar's LNG industry is highly developed, with six LNG trains operating in the country.

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Construction and Contractors

The construction of the Oman LNG project is a complex process that involves multiple phases. Phase one will involve construction, pre-commissioning, commissioning, civil works, building construction, installation of temporary facilities and mechanical/electrical tasks.

Several contractors are involved in the project. Technip Energies was awarded the engineering, procurement and construction (EPC) contract of the natural gas liquefaction train.

The project also involves contractors for other specific tasks. SIPC will be responsible for the substructure maintenance and mooring operations of the export jetty, while CB&I, a wholly-owned unrestricted subsidiary of McDermott, was awarded an EPC contract in May 2024 to supply a full containment concrete LNG storage tank for the project.

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Construction Phases

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Construction phases are a crucial part of any project, and it's essential to understand what they entail.

Phase one involves a wide range of tasks, including construction, pre-commissioning, commissioning, civil works, building construction, installation of temporary facilities, and mechanical/electrical tasks.

This phase is critical in setting the foundation for the entire project, and it's where the bulk of the physical work takes place.

Phase two focuses on the startup and operations of the project, including regular maintenance of the site facilities and associated infrastructure.

It's a busy time, but it's also where the project starts to take shape and become a reality.

Phase three, also known as decommissioning, is the final phase of the project, where the facilities and infrastructure are reviewed for potential extension or decommissioning.

This process involves removing or repurposing, recycling, or disposing of surface structures, as well as site reinstatement and restoration.

It's a complex and time-consuming process, but it's necessary to ensure a smooth transition and minimize environmental impact.

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Contractors Involved

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Technip Energies was awarded the engineering, procurement and construction (EPC) contract of the natural gas liquefaction train. This contract is a significant part of the project's development.

SIPC will be responsible for the substructure maintenance and mooring operations of the export jetty.

CB&I, a wholly-owned unrestricted subsidiary of McDermott, was awarded an EPC contract in May 2024 to supply a full containment concrete LNG storage tank for the project.

Frequently Asked Questions

Does Oman produce LNG?

Yes, Oman produces Liquefied Natural Gas (LNG) through Oman LNG, a joint venture company established in 1994. The company also produces Natural Gas Liquids (NGLs) as a by-product.

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