Shell becomes Oman’s largest LNG offtaker

Oman LNG has signed term-sheet agreements with Shell and OQ for the supply of LNG, the LNG producer announced via social media on Wednesday.

Under the first deal, Oman LNG will export 800,000 tonnes per year of LNG to Shell International Trading Middle East for 10 years starting in 2025.

The second deal involves supplying 750,000 tonnes per year of LNG to OQ Trading for four years starting in 2026.

With these two deals, Oman LNG has committed to exporting 10.4 million tonnes per year of LNG in 2023, with total commitments encompassing 80 million tonnes per year of LNG over a ten-year period.

In January 2023, Oman LNG and Shell also inked a 10-year supply deal that will see 800,000 tonnes per year of LNG delivered starting from 2025.

The two deals with Shell will make the American energy giant the country’s largest LNG offtaker post 2024.

“Shell is proud of the role it has played in Oman LNG to date, as a shareholder and a technical advisor since its inception,” said Walid Hadi, senior vice-president and country chair of Oman Shell.

“We are proud that we will now become Oman LNG’s largest LNG purchaser as well as its largest private shareholder. This additional off-take term sheet signifies our deep commitment to continue pulling on all levers of Oman’s energy system to address the pressing trilemma of sustainability, affordability, and security.”