Oil & Gas

On October 9, 2024, the Sultanate of Oman took a significant step in bolstering its position in global energy markets by signing a new liquefied natural gas (LNG) deal. This latest agreement, the fifth of its kind this year, was made between Oman LNG and Japan's Kansai Electric Power. According to a statement from the Washington-based Specialty Energy Platform, the deal involves supplying Kansai with 0.4 million metric tons per year of LNG for four years, beginning in 2026, sourced from the Oman Natural Gas Company's industrial complex.

This agreement not only strengthens the existing collaboration between Oman LNG and Kansai Electric Power but also opens avenues for new buyers in Japan, enhancing Oman's foothold in the competitive LNG market. The latest deal follows another significant agreement signed in April 2024, wherein Oman LNG committed to supplying up to 0.8 million metric tons per year to Japan's JERA over a decade, starting in 2025. Additionally, Oman's partnerships have expanded beyond Japan, with agreements signed with Turkey's BOTASH and Shell Trading, which highlight the country’s focus on securing long-term contracts in the LNG sector.

Oman's LNG sector is demonstrating its prowess through a series of strategic deals aimed at increasing its export capabilities and establishing a robust reputation as a reliable supplier. The agreements signed in 2023, particularly with international players, showcase Oman LNG's commitment to operational efficiency and sustainable energy solutions. The focus on long-term contracts, spanning four to ten years, signifies Oman's proactive approach to meeting the increasing global demand for liquefied natural gas.

The operational capacity of Oman LNG’s industrial complex in Sur plays a crucial role in this expansion. With a production capacity nearing 11.5 million metric tons per annum, the complex is set to see further enhancements with the upcoming construction of the Sur LNG production line, which will add approximately 3.8 million metric tons to Oman's annual output. With exports of LNG increasing by 10.7% in the first half of 2024, Oman is positioning itself as a key player in the global energy landscape, particularly in the lucrative Japanese market, which has been a significant destination for Oman's LNG for over two decades.