Oman LNG and Hitachi Zosen form methanation partnership

Business Developments & Projects

Oman LNG and Japanese engineering and technology company Hitachi Zosen Corporation have concluded a memorandum of understanding (MoU) to cooperate in the field of methanation as part of the carbon recycling, hydrogen, ammonia, and methanation collaboration between the Japanese and Omani governments.

Illustration only; Archive. Archive. Courtesy of Oman LNG

Back in December 2022, Oman’s Ministry of Energy and Minerals and Japan’s Ministry of Economy, Trade and Industry executed a memorandum of cooperation on carbon recycling, including hydrogen, ammonia, and methanation.

The new MoU, signed between Hitachi Zosen and Oman LNG on March 11, 2024, aims to implement methanation equipment in LNG plans owned by Oman LNG and to utilize emitted CO2 as a resource.

The intention is to explore the commercial prospects for a small pilot plant at a site adjacent to the existing LNG plant and produce 1,200 Nm3/h of e-methane.

Hitachi Zosen’s proposal has been accepted for the fiscal year 2024 subsidy program for which Japan’s Ministry of Economy, Trade and Industry issued a public call in January 2024, and will use the subsidy for the MoU’s pilot plant’s basic design and evaluation for commercialization.

Oman LNG recently entered into shareholder agreements with several international companies, including Shell, as part of its strategic roadmap to extend the existing agreements and continue business beyond 2024.

In addition to shareholding agreements, Oman LNG signed a gas supply agreement with the Integrated Gas Company (IGC) extending the supply of feed gas to Oman LNG and solidify the company’s strive towards long-term growth and sustainability.

The Omani company also has in place LNG supply deals with BP, Turkish BOTAŞ Petroleum Pipeline Corporation, German Securing Energy for Europe (SEFE), and China International United Petroleum and Chemical Co. (UNIPEC).