Monday, July 15, 2024

Marsa LNG Project: TotalEnergies and OQ’s Milestone Investment in Oman’s Energy Sector

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TotalEnergies and OQ Announce FID on Marsa LNG Project in Sultanate of Oman

In a significant move towards enhancing the Sultanate of Oman’s liquefied natural gas (LNG) capabilities, TotalEnergies, a leading French oil and gas company, and OQ, Oman’s national oil company, have announced reaching the Final Investment Decision (FID) for the Marsa LNG project. This decision marks a milestone in the long-standing partnership between TotalEnergies and the Sultanate of Oman, emphasizing their commitment to the country’s energy sector.

The FID was reached during a series of high-profile meetings, including discussions between TotalEnergies chairman and CEO Patrick Pouyanné, Oman’s Sultan Haitham bin Tariq Al Said, and the Minister of Energy and Minerals, Salim bin Nasser Al Aufi. These meetings underscored the strategic importance of the Marsa LNG project for both TotalEnergies and the Sultanate of Oman.

As part of this ambitious project, TotalEnergies has entered into an agreement with Oman LNG to offtake 0.8 million tonnes per annum (Mtpa) of LNG over a ten-year period starting from 2025. This agreement positions TotalEnergies as one of the main offtakers of Oman LNG’s production, emphasizing the company’s pivotal role in Oman’s LNG landscape.

Furthermore, TotalEnergies and OQ Alternative Energy are advancing in discussions to co-develop a significant renewable energy portfolio, which could reach up to 800MW. This includes a 300MWp solar project specifically designed to supply power to the Marsa LNG initiative. Such groundbreaking efforts will further enhance the sustainability and efficiency of Oman’s energy sector.

The Marsa LNG project is a joint venture, with TotalEnergies holding an 80% stake and OQ owning the remaining 20%. This integrated project stands as a testament to TotalEnergies’ commitment to fostering a long-term relationship with the Sultanate and supporting the sustainable development of its energy resources.

Pouyanné expressed pride in launching the Marsa LNG project alongside OQ, highlighting its alignment with TotalEnergies’ strategy to transition towards more sustainable energy solutions. The project exemplifies the company’s innovative spirit and its commitment to reducing greenhouse gas emissions through the integration of LNG and renewable energy sources.

The Marsa LNG project entails the development of a 1Mt/y capacity LNG liquefaction plant located in the port of Sohar, slated to commence LNG production by the first quarter of 2028. A key feature of this project is its emphasis on sustainability, with plans to power the LNG plant entirely through solar energy. A dedicated 300MWp photovoltaic (PV) solar plant will significantly reduce the plant’s greenhouse gas emissions, positioning it as one of the lowest emissions intensity LNG plants globally.

Significant engineering, procurement, and construction (EPC) contracts have been awarded to Technip Energies for the LNG plant and CB&I for the LNG tank, highlighting the project’s forward momentum and the collaboration between leading industry players.

Upon completion, the Marsa LNG project is poised to make a considerable impact on the Sohar region and beyond, providing long-term employment opportunities and delivering substantial socio-economic benefits. This project not only represents a strategic advancement in Oman’s energy sector but also showcases TotalEnergies and OQ’s commitment to pioneering energy transition efforts on a global scale.

Jordan Clark
Jordan Clarkhttps://www.businessorbital.com/
Jordan Clark brings a dynamic and investigative approach to business reporting. Holding a degree in Business Administration and a certification in Data Analysis, Jordan has an eye for detail and a knack for uncovering the stories behind the numbers. His career began in the bustling world of Silicon Valley startups, giving him firsthand experience in tech entrepreneurship and venture capital. Jordan's reports often focus on technology's impact on business, startup culture, and emerging

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