MUSCAT, JUNE 24
Thailand’s national energy company PTT Exploration and Production (PTTEP) has announced that its clean energy arm FutureTech Energy Ventures Co Ltd (FTEV) is a partner in a consortium that signed agreements this week to develop a mega-scale green hydrogen project in the Sultanate of Oman.
Bangkok-based FTEV joins five other multinational partners that successful bid for Block Z1-02 – a roughly 340 sq kilometer concession – located at Duqm in Oman’s Al Wusta Governorate. The consortium is led by South Korean steel manufacturing giant POSCO and French energy company ENGIE, and also groups Korean businesses Samsung Engineering, Korea East-West Power and Korea Southern Power, besides MESCAT Middle East DMCC.
Investment in the integrated project – encompassing upstream renewable power components, as well as the green hydrogen (electrolyer) and green ammonia conversion plants - is estimated at between $7 billion - $8 billion. Powered by around 5 GW of renewable capacity, the mega scheme will generate 220,000 tonnes per annum (tpa) of green hydrogen. Much of this output will be converted into green ammonia at a 1.2 million tpa capacity plant at Duqm for eventual export to South Korea. The rest will be retained in-country for local consumption.
In a statement, PTTEP hailed the signing of a Project Development Agreement and sub-usufruct agreement in Muscat on Wednesday as a milestone for the Thai national energy conglomerate as it expands its footprint in the global green energy industry. At the same time, the deals will see PTTEP ramping up its presence in Oman’s rapidly evolving energy space.
In addition to a 20% stake in Block 61 (home to one of Oman’s biggest gas fields), PTTEP also owns minor stakes in Petroleum Development Oman (PDO), Block 53 (Mukhaizna block) and Oman LNG.
Commenting on PTTEP’s new investment in Oman through the Z1-02 Block acquisition, Montri Rawanchaikul, Chief Executive Officer, said: "Oman is at the forefront regarding driving substantial development in green hydrogen. Being granted the exclusive rights for this large-scale project is a significant milestone for PTTEP and our partners in expanding the business into clean energy in one of the world's high-potential areas for renewables. PTTEP will leverage our experience and understanding of the energy business in Oman for over 20 years to contribute to the project development. Participation in this green hydrogen project will reinforce other future developments of new forms of energy, supporting our goal to become a low-carbon organization.”
PTTEP’s green energy subsidiary, FutureTech Energy Ventures Company Limited (FTEV), was established in 2021 to develop and invest in the group’s clean energy business such as renewable energy and hydrogen. The new spin-off will explore business opportunities in low carbon fuels such as methanol and sustainable aviation fuel (SAF).
Construction work on the consortium’s green hydrogen and green ammonia project is expected to commence in 2027, with commercial operations slated during 2030.
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