Oman’s Marsa LNG project secures European Commission nod
Published: 04:08 PM,Aug 03,2024 | EDITED : 07:08 PM,Aug 03,2024
Layout of the project site at Sohar Port and Freezone.
MUSCAT: The joint venture of French energy group TotalEnergies and Omani state-owned integrated energy group OQ has received the European Commission’s (EC) green light to proceed with the execution of the $1.6 billion low-carbon Marsa LNG bunkering project at Sohar Port and Freezone.
The Commission ruled last week that the project is unlikely to raise competition concerns due to its limited impact on the European Economic Area. It follows a review of the JV partnership for possible breaches of the “concentrations” provision of Article 4 of the Council Regulation (EC) No 139/2004 (1). EU Merger Regulations require compulsory notification to the European Commission of mergers, acquisitions and certain joint ventures that involve a change of control and meet certain turnover thresholds.
Significantly, the EC’s thumbs-up comes as the joint venture partners – TotalEnergies EP Oman Development BV (80%) and OQ SAOC (20%) – prepare to commence work on the 1 million tonnes per annum capacity LNG liquefaction project at a site within Sohar Port.
As a low-carbon project – the first of its kind in the Middle East – Marsa LNG will be powered by a dedicated 300 MW-peak solar plant that will meet 100% of the project’s energy needs. All of the plant’s output is earmarked as low-carbon bunker fuel for the marine industry.
French engineering and technology firm Technip Energies has been awarded the contract to build the LNG train on an Engineering, Procurement and Construction (EPC) basis. In keeping with its low-carbon footprint, Marsa LNG will use electric-driven motors instead of conventional gas turbines.
The plant will come up on a reclaimed site located between the seawater intake of Majis Industrial Services Company (MISC) and the existing harbour breakwater. Besides an LNG plant, the key infrastructure will include a condensate export pipeline, an electrical transmission line, a topside of the LNG export jetty, along with accommodation camps and other facilities.
Furthermore, Marsa LNG has been designed as a zero-flaring plant consisting of inlet facilities, a mercury removal unit, an Acid Gas Removal Unit (AGRU), a dehydration unit, and a heavy hydrocarbon removal unit. It would also include a liquefaction unit, a nitrogen rejection unit, an end flash gas unit, an LNG storage and unloading unit, a boil-off gas unit, an AGRU incinerator, and a flare system.
Plant commissioning is scheduled to commence in Q1 2026 with LNG production expected to start by Q1 2028.
The Commission ruled last week that the project is unlikely to raise competition concerns due to its limited impact on the European Economic Area. It follows a review of the JV partnership for possible breaches of the “concentrations” provision of Article 4 of the Council Regulation (EC) No 139/2004 (1). EU Merger Regulations require compulsory notification to the European Commission of mergers, acquisitions and certain joint ventures that involve a change of control and meet certain turnover thresholds.
Significantly, the EC’s thumbs-up comes as the joint venture partners – TotalEnergies EP Oman Development BV (80%) and OQ SAOC (20%) – prepare to commence work on the 1 million tonnes per annum capacity LNG liquefaction project at a site within Sohar Port.
As a low-carbon project – the first of its kind in the Middle East – Marsa LNG will be powered by a dedicated 300 MW-peak solar plant that will meet 100% of the project’s energy needs. All of the plant’s output is earmarked as low-carbon bunker fuel for the marine industry.
French engineering and technology firm Technip Energies has been awarded the contract to build the LNG train on an Engineering, Procurement and Construction (EPC) basis. In keeping with its low-carbon footprint, Marsa LNG will use electric-driven motors instead of conventional gas turbines.
The plant will come up on a reclaimed site located between the seawater intake of Majis Industrial Services Company (MISC) and the existing harbour breakwater. Besides an LNG plant, the key infrastructure will include a condensate export pipeline, an electrical transmission line, a topside of the LNG export jetty, along with accommodation camps and other facilities.
Furthermore, Marsa LNG has been designed as a zero-flaring plant consisting of inlet facilities, a mercury removal unit, an Acid Gas Removal Unit (AGRU), a dehydration unit, and a heavy hydrocarbon removal unit. It would also include a liquefaction unit, a nitrogen rejection unit, an end flash gas unit, an LNG storage and unloading unit, a boil-off gas unit, an AGRU incinerator, and a flare system.
Plant commissioning is scheduled to commence in Q1 2026 with LNG production expected to start by Q1 2028.