LNG from Oman: a differentiated value proposition

Oman

Hamed Al Naamany, CEO of Oman LNG, talks to The Energy Year about how the company is positioning itself to tap into the large forecasted growth in the global LNG market and why LNG from Oman is trusted globally. Oman LNG is the country’s sole exporter of LNG, operating a three-train plant with a capacity of 12 million tonnes per year (tpy) in Qalhat, Sur.

How is Oman LNG strengthening its position in the growing global LNG market?
We have shifted our operating model and benefitted from recent debottlenecking, allowing us to reach 12 million tonnes of LNG last year, which is quite a sizeable increase from our 11.4-million-tonne nameplate capacity. This extra capacity lets us be more responsive to spot-market demand and seasonality. We now have nearly 85% of our volumes locked into term contracts of 3-10 years, providing stability while preserving flexibility.
Our customer portfolio now spans from Europe to China and Japan. We deal with end users, portfolio players and major energy companies, giving us full-spectrum market exposure.
Importantly, we’re not just marketing Oman LNG as a facility. We’re delivering “LNG from Oman” because that is the brand the global market recognises and trusts. This includes Sur LNG, our planned fourth train, and Marsa LNG in Sohar, a dedicated bunkering facility being built in partnership with TotalEnergies and our sister company OQ. Oman’s market positioning is not about who operates the plant but the reliability and flexibility of the product from the country.

Why is “LNG from Oman” a trusted brand in such a competitive global market?
Oman LNG offers a differentiated value proposition. We work closely with different types of buyers – whether in Europe, Asia or among portfolio players – to tailor commercial flexibility to their needs and ours. We are known as one of the most agile producers globally. We listen to our customers while meeting the expectations of our government. That dual responsiveness resulted in the successful signing of long-term agreements in record time.
The government sees this sector as essential to Vision 2040. Oman LNG is a central piece in that agenda. We create value for every molecule of gas we receive, making sure that value is returned to our shareholders and to the country. Beyond dividends, we have a positive impact on employment, SMEs, local contractors and social responsibility, integrating deeply into the national economic engine.

What role does OQ and TotalEnergies’ Marsa LNG play in positioning Oman’s LNG globally?
It’s a differentiator. Marsa is the world’s first purpose-built LNG bunkering facility. The location is fantastic, and we’re all for it. Global shipping is shifting to LNG-fuelled vessels, and Oman sits on a key trade route. The government’s decision to develop Marsa sends a powerful message: Oman will participate in every LNG market segment – power, transport, bunkering – as part of its growth and diversification agenda.

How are you integrating in-country value (ICV) into the Sur LNG expansion, and what is the timeline for the new train?
Oman’s construction sector has matured significantly, with many companies gaining experience from Duqm and Sohar. We intend to leverage that local construction capability for Sur LNG. For engineering, LNG remains a niche area globally, so we will combine local strengths with international know-how.
We’re prioritising in-country value across employment, procurement and logistics. We aim to be a pacesetter for ICV in large-scale industrial projects. This includes working with local vendors on machinery, equipment and services while ensuring we stay on schedule and within budget. The success of Oman LNG as a global brand depends on delivering reliable, competitive projects.
The government has announced the new Sur LNG train project and is driving it forward. Sur LNG aim to be ready this year with a full proposal. The final decision will rest with the government and the partners. The market clearly wants the product, and with a compelling value proposition, we could see delivery within less than four years from approval.

How does Oman LNG ensure long-term feedstock availability?
We’ve always been flexible. When Khazzan came on line in 2018, we adapted. Our facilities at Oman LNG, Qalhat LNG and Sur LNG are designed to process various gas compositions. We don’t rely on specific fields; we adjust to what the government assigns. Our competitive edge is in modifying plants cost-effectively while maintaining output.

What are your strategic growth priorities for the next five years?
The first is to sustain our 12 million-tpy production level as the new norm. The second is to deliver low-carbon LNG by integrating renewables, especially solar, into our power mix. We’re doing it because it’s good for Oman and good for the planet. Those are the only reasons. By saving gas from captive power, we free it for monetisation. We’ve found a way to do this without subsidies.
Third, we are focusing on cost competitiveness. While we can’t control global prices, we can control our costs to ensure we deliver the best margins. Finally, commercial agility is key. We’re using advanced optimisation tools – swapping, diverting, re-trading – to position Oman LNG as a reliable, flexible player.
That’s why energy traders and large portfolio players are partnering with us. We now have 14 SPA [sales and purchase] agreements with companies such as Botas, Shell, BP, TotalEnergies, Jera, Mitsui, Vitol, Mercuria, Kansai Electric Power, PTT, SEFE, OQT and Sinopec, delivering volumes from 2025 to 2034. We have more to come.

How is Oman LNG adapting to the evolving LNG market landscape?
The LNG market has become geopolitical, not just supply and demand. Price shifts now happen within a day. Our job is to navigate that volatility with our partners, staying agile but also fair. We aim for mutual value creation, not market destruction.
Production growth globally is uneven, and supply-demand balances are shifting. We must stay alert to those inflection points. Our long-term interest is not just to sell LNG but to ensure our customers thrive with us.

Read our latest insights on:

• Oman