MUSCAT, JAN 6
Global multi-energy group TotalEnergies is set to take delivery of a shipment of LNG from Oman LNG’s Qalhat complex — the first such cargo under a new 10-year-long supply agreement formalised by the two parties last year.
Under the agreement, inked last April, Oman LNG has committed to supplying the French-based energy giant with around 800,000 metric tonnes per annum of LNG for a period of ten years starting from 2025.
Announcing the maiden shipment in a post on Sunday, Sergio Giorgi, TotalEnergies Country Chair Oman, commented: “What a better way to start 2025 for TotalEnergies in Oman. Our first LNG cargo from a 10- years’ offtake contract with Oman LNG has finished loading and will sail to provide Omani power to other places in the world.”
Significantly, the start of the new LNG offtake arrangement adds a new dimension to TotalEnergies’ expanding relationship with the Sultanate of Oman, presently encompassing energy trading, upstream oilfield investment and operation, and renewable energy investment and development. Also contributing to its sizable footprint in Oman are partnership interests in Petroleum Development Oman (4 per cent) and Oman LNG. TotalEnergies is also playing a lead role in the development and operation of a first-ever LNG bunkering project currently in the early stages of implementation at SOHAR Port and Freezone.
The LNG offtake agreement also reinforces TotalEnergies longstanding partnership with majority-owned Oman LNG which, following a multi-year debottlenecking and rejuvenation programme, has lifted its capacity to 11.4 million metric tonnes per annum. TotalEnergies has a 5.54 per cent stake in Oman LNG. It holds an indirect interest in Qalhat LNG (2.04 per cent) through its stake in Oman LNG.
In a statement to mark the initial offtake deal reached in November 2023, Julien Pouget, Senior Vice President Middle East & North Africa, Exploration & Production at TotalEnergies, commented: "We are pleased to extend our partnership with Oman LNG. This LNG contributes to our supply of Europe and Asian markets and strengthens our integrated and flexible global portfolio, in line with TotalEnergies’ ambition to increase its LNG production and long-term purchases by 50 per cent by 2030."
On the upstream front, TotalEnergies has a 26.55 per cent interest in Block 10, a 22.5 per cent interest in Block 11 and an 80 per cent interest in Block 12, which it operates as well. Earlier in 2024, the French firm signed a Final Investment Decision (FID) for the Marsa LNG project in joint venture with OQ (20 per cent).
Its presence in the renewable energy space has grown as well in recent years. In 2022, TotalEnergies entered into an agreement with Veolia to build a 17 MWp capacity solar power plant to support the daytime energy needs of the Sharqiyah Desalination Plant.
More recently, it signed agreements with OQ Alternative Energy (OQAE) to develop 300 MW of renewable energy projects in Oman. They comprise a 100 MW North Solar project at Saih Nihaydah, and Riyah-1 and Riyah-2, representing two 100 MW wind power projects located on the Amin and West Nimr fields in south Oman. Output from these projects will be supplied to PDO under long-term supply contracts.
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