Oman LNG delivers first cargo from 10-year deal to its largest offtaker Shell

Oman LNG has delivered its first liquefied natural gas (LNG) shipment forming part of long-term supply agreements with UK-headquartered energy major Shell.

The delivery was marked with an event held under the patronage of Salem bin Nasser Al Aufi, Oman’s Minister of Energy and Minerals, at the country’s Sur Industrial Park. The inaugural shipment is said to mark the beginning of a new era starting in 2025, reinforcing Oman’s position in global markets.

Shell and Oman LNG inked a contract for the former to purchase up to 1.6 million tons per annum (mtpa) of LNG from the latter during the 2025–2034 period, thus making Shell the largest buyer of natural gas from the Omani player.

Oman LNG is a joint venture (JV) between the Government of the Sultanate of Oman (51%), Shell Group (30%), TotalEnergies (5.54%), KOLNG (5%), Partex (2%), Mitsubishi (2.77%), Mitsui (2.77%), and Itochu (0.92%).

The company operates a three-train liquefaction plant with a nameplate capacity of 10.4 mtpa at Qalhat, near the town of Sur, Oman. In November 2024, KBR secured a front-end engineering design (FEED) deal for the expansion of the complex by adding a fourth train, which is set to have a 3.8-mtpa capacity. 

The JV signed several LNG supply agreements in 2023, including with France’s TotalEnergies and Thailand’s PTT Global LNG, Türkiye’s BOTAŞ, and China International United Petroleum and Chemical (UNIPEC).

Additionally, a binding term-sheet agreement was signed with Germany’s Securing Energy for Europe (SEFE), which was formalized with a sale and purchase agreement (SPA) for 0.4 mtpa of LNG inked in March 2024.