MUSCAT : The newly established Integrated Gas Company (IGC) signed an agreement to supply feed gas to Oman LNG at a ceremony held at the Royal Opera House Muscat on October 23, 2023.
Speaking to the Observer, Minister of Energy and Minerals and Chairman of Oman LNG, Salim Nasser al Aufi, shared the significance of this deal.
“This is extremely significant [for IGC] because this is the first significant contract they signed since the company was initiated earlier this year. Integrated Gas Company was initiated as a single buyer of gas in the Sultanate of Oman. They took that role from the Ministry of Energy and they are now the single supplier of gas.”
“Oman LNG and Qalhat LNG are one of the customers of IGC, in addition to, of course, the power sector, the other industries locally and so on.” Al Aufi added that the agreement represents a long-term commitment, spanning approximately 10 to 15 years, with the effective date set for 2025 and 2026 respectively.
Chief Executive Officer of Oman LNG, Hamed al Naamany, shared that the company intends to purchase the entire feedstock capacity of both Oman LNG and Qalhat LNG facilities, which will amount to approximately 1.5 billion cubic feet per day.
He also added that the deal will allow Oman LNG to collaborate closely with IGC as a single partner and will aid IGC in achieving the specific role and objectives set by the government, enabling its growth and success.
According to the Ministry of Finance, the establishment of the IGC is expected to boost gas revenue by RO 150 million to reach RO 1.4 billion in 2023.
The establishment of IGC is governed by the provisions of the Commercial Companies Law promulgated by Royal Decree No. (18/2019), the Privatization Law promulgated by Royal Decree (51/2019), the Capital Markets Law and its amendments promulgated by Royal Decree (80/1998), and the provisions of the Memorandum of Association and the Company's Articles of Association.
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