Oman Announces New LNG Train to Increase Production Capacity
The Sultanate of Oman has unveiled plans to construct an additional liquefied natural gas (LNG) train at the Qalhat Industrial Complex in Sur, located in the South A’Sharqiyah Governorate. This expansion is a major step in boosting the country’s LNG production capacity by 3.8 million metric tonnes per annum (MTPA), bringing the total national output to 15.2 MTPA when completed in 2029.
This development is part of Oman’s broader energy strategy, focusing on increasing production efficiency and securing its role as a key global LNG exporter. The new LNG train is expected to strengthen Oman’s position in the international energy market while supporting the nation’s long-term economic diversification efforts.
Strategic Expansion to Meet Global Energy Demand
The construction of the fourth LNG train aligns with Oman’s commitment to enhancing energy security and meeting the increasing global demand for clean energy. By leveraging its well-established infrastructure and abundant natural gas reserves, the country aims to maximize the utilization of its gas resources and expand its export capacity.
This initiative is crucial for ensuring a stable supply of LNG to both long-term contractual partners and emerging markets. With a growing demand for cleaner energy sources worldwide, Oman is positioning itself as a reliable supplier capable of meeting the needs of key consumers in Asia, Europe, and other regions.
The Minister of Energy and Minerals, Eng. Salem Al Aufi, emphasized the significance of this project, stating, “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.” He further noted that this project would help Oman capitalize on the increasing global shift towards cleaner fuels while boosting national revenue and economic sustainability.
Advancements in Project Development
Oman is currently in the final stages of completing the Front-End Engineering Design (FEED) study for the new LNG train. This phase is crucial as it sets the foundation for the project’s Final Investment Decision (FID), which will determine the financial and operational framework for execution.
In November 2024, KBR, a globally recognized engineering firm, was awarded the FEED contract for the project. The expansion will include not just the fourth LNG train with a capacity of 3.8 MTPA but also enhancements to the existing infrastructure, including LNG storage facilities, a jetty, and other utilities to support increased production.
Jay Ibrahim, President of Sustainable Technology Solutions at KBR, expressed the company’s strong commitment to the project. He stated, “LNG will play an increasingly vital role in the global energy mix, and we are honored to continue our collaboration with Oman on this critical project.” He further emphasized that the new LNG train would be a milestone in supporting Oman’s energy security and sustainability objectives.
Oman LNG: A Pillar of the Local Economy
Oman LNG, the state-owned entity responsible for the country’s LNG production, operates three existing trains at the Qalhat complex, with a combined capacity of 10.4 MTPA. Due to technical optimizations and debottlenecking efforts, the facility’s actual production capacity has increased to approximately 11.4 MTPA.
The company plays a significant role in Oman’s economy, generating revenue through LNG exports and contributing to job creation in the energy sector. Oman LNG operates as a joint venture, with the Omani government holding a 51% stake. Other stakeholders include Shell (30%), TotalEnergies (5.54%), Korea LNG (5%), Mitsubishi Corporation (2.77%), Mitsui & Co. (2.77%), PTTEP (2%), and Itochu Corporation (0.92%).
In 2023, Oman LNG delivered 173 LNG cargoes, totaling 11.5 million tonnes of LNG. Approximately 94% of these shipments were executed under long-term contractual agreements, ensuring stable revenue for the country, while the remaining cargoes were sold in the spot market, providing flexibility to respond to fluctuating global demand.
Global Partnerships and Future Outlook
Oman LNG has been actively securing new agreements with international energy giants to strengthen its global market presence. The company has signed supply contracts with key players such as TotalEnergies, Botas, Japan’s JERA, and Shell. These partnerships highlight Oman’s role in meeting the growing energy needs of major economies while ensuring a stable and sustainable supply chain.
With the completion of the fourth LNG train, Oman is expected to significantly enhance its LNG export capabilities. The additional production capacity will allow the country to meet increasing international demand while maintaining long-term supply commitments with global energy companies.
As the world transitions towards cleaner and more sustainable energy sources, Oman’s investment in LNG infrastructure reaffirms its dedication to supporting energy security and sustainability. The successful completion of this project will not only solidify Oman’s status as a leading LNG exporter but also contribute to economic diversification and long-term energy stability in the region.
The fourth LNG train represents a significant milestone in Oman’s energy sector, positioning the country as a key player in the global LNG industry for years to come.
Do follow gulf magazine on Instagram
for more information click here
