Oman Qalhat LNG Terminal

From Global Energy Monitor
This article is part of the Global Fossil Infrastructure Tracker, a project of Global Energy Monitor.
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Oman Qalhat LNG Terminal, also known as Oman LNG, is an operating LNG terminal in Ash Sharqiyah, Oman. In 2023 a debottlenecking project for the terminal was finished, increasing the terminal's capacity by 1 mtpa.[1]

Location

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Project Details

Train 1

  • Operator: Oman LNG[2]
  • Owner: Government of Oman (51%), Shell (30%), ToalEnergies (5.5), Korea LNG (5%), Mitsubishi (2.8%), Mitsui (2.8%), PTTEP (2%) Itochu (0.9%)[3]
  • Parent company: Government of Oman, Shell, TotalEnergies, Korea LNG, Mitsubishi, Mitsui Group, PTTEP, Itochu Corporation
  • Location: Qalhat, Ash Sharqiyah, Oman[4]
  • Coordinates: 22.6586, 59.40748 (exact)[4]
  • Type: Export[5]
  • Capacity: 3.8 mtpa[6]
  • Status: Operating[5][6]
  • Start year: 1999[5]

Train 2

  • Operator: Oman LNG[2]
  • Owner: Government of Oman (51%), Shell (30%), ToalEnergies (5.5%), Korea LNG (5%), Mitsubishi (2.8%), Mitsui (2.8%), PTTEP (2%) Itochu (0.9%)[3]
  • Parent company: Government of Oman, Shell, TotalEnergies, Korea LNG, Mitsubishi, Mitsui Group, PTTEP, Itochu Corporation[3]
  • Location: Qalhat, Ash Sharqiyah, Oman[4]
  • Coordinates: 22.6586, 59.40748 (exact)[4]
  • Type: Export[5]
  • Capacity: 3.8[6]
  • Status: Operating[5][6]
  • Start year: 2000[5]

Train 3

  • Operator: Oman LNG[2]
  • Owner: Government of Oman (46.8%), Oman LNG (36.8%), Naturgy (7.4%), Mitsubishi (3%), Itochu Corporation (3%), Osaka Gas (3%)[6][7]
  • Parent company: Government of Oman, Shell, Mitsubishi, Eni SpA, Naturgy, Itochu Corporation, Osaka Ga, TotalEnergies, Korea LNG, Mitsui, PTTEP[5]
  • Location: Qalhat, Ash Sharqiyah, Oman[4]
  • Coordinates: 22.6586, 59.40748 (exact)[4]
  • Type: Export[5]
  • Capacity: 3.8 mtpa[6]
  • Status: Operating[5][6]
  • Start year: 2006[5]

Train 4

  • Operator: Oman LNG[8][9]
  • Owner:
  • Parent company:
  • Location: Qalhat, Ash Sharqiyah, Oman[8][9]
  • Coordinates: 22.6586, 59.40748 (exact)
  • Type: Export[8][9]
  • Capacity: 3.6-3.7 mtpa[9]
  • Status: Proposed[8][9]
  • Start year:

Background

Oman Qalhat LNG Terminal is an LNG terminal in Ash Sharqiyah, Oman.[10]

Oman LNG was established by the Royal decree of Sultan Qaboos of Oman in 1994. Construction of the Qalhat terminal began was in November 1996. It made its first shipment in September 2000.[11]

The LNG plant is supplied from the gas gathering plant at Saih Rowl in the central Oman gas field complex through a 360 kilometres (224 mi) pipeline with a capacity of 12 billion cubic meters per annum of gas. It is operated by Petroleum Development Oman. The gas originates from the Barik, Saih Nihayda and Saih Rawl gas fields.

The Oman LNG plant initially had two liquefaction trains. The total construction costs of the terminal were US$2 billion.[12] In 2005, the Qalhat LNG project, a liquefaction train adjacent to the Oman LNG terminal and an expansion of the original project (Train 3), officially began its operations with a capacity of 3.3 mtpa.[13]

In 2005, the Oman Qalhat LNG terminal was the largest consumer of Oman's natural gas. It used 40% of the country's total gas production. By 2011, 64% more gas went to the oil fields for enhanced oil recovery.[12]

In October 2013, Oman LNG and Qalhat LNG announced they would merge to become a single entity. This would increase the combined capacity of their three liquefaction trains to 10.4 million tons per year.[5][12]

Oman Qalhat LNG's revenue was $2,612 million in 2015. Its production that year was 7.9 million tons. In 2016 there was a fall in LNG prices, and the company's revenue was $1,925 million in that year. Its production was 8.5 million tons.[14]

In 2022, Oman exported 11.6 million tons of LNG, a record level for the country.[1] The increased exports in 2022 were partly a result of the growth in global demand for LNG that followed the war in Ukraine.[15]

In 2023, continuing with the previous year's trend, Oman delivered its first LNG cargo to Europe through Croatia.[15] In May 2023, Oman LNG also announced that after the recent completion of its debottlenecking project, it was expecting to increase its capacity to around 12 mtpa in one to two years.[16] As of 2024, the terminal's total capacity is 11.4 mtpa.[6]

In 2024, Ghalib Alamri, Manager of Marker Intelligence at Oman LNG, mentioned that Oman LNG's "plans to add a fourth train are still at the evaluation stage from the government" and that "a technical evaluation was done."[8] A decision regarding the terminal's proposed fourth train could be expected by the beginning of 2025.[8] The terminal's new train, which would be filling a potential gas shortage forseen for 2029, according to Oman LNG's Chief Marketing Officer, Mahmoud al-Baloushi, is planned to have a capacity of around 3.6 to 3.7 mtpa.[9]

In April 2024, LNG Prime reported that Oman LNG had delivered 173 LNG cargoes in 2023, with a total revenue of US$4.9 billion, and a net profit of US$1.5 billion.[17] Although the company delivered 3 fewer cargoes in 2023 than in 2022, its revenue decreased by 15.5%.[17] Additionally, the plant produced 11.5 mtpa of LNG, which exceeded the terminal's nameplate capacity.[17]

Also in 2024, Oman LNG and its stakeholders signed a series of deals to extend the company's operations and to extend several gas supply deals beyond 2024.[17] As a result of these deals, Oman LNG secured sale commitments up to 10.4 mtpa in Asia and Europe.[17]

Iran/Oman Pipeline to LNG

In 2013 Oman and Iran signed an agreement to supply gas to Oman through the pipeline in a project valued at $60 billion over 25 years. Iran’s oil minister said in 2017 that the pipeline would need a $1.2 billion investment.[18]

The pipeline could connect Iran’s gas reserves with Omani consumers and with Oman's LNG infrastructure. Oman's LNG plant could re-export the gas.[18]

The two countries renewed efforts to implement the pipeline after international sanctions against Iran were lifted in January 2016. The U.S. has pressured Oman to find alternative gas suppliers.[18]

In February 2017 Oman and Iran agreed to change the route of the undersea pipeline. Reuters reported this move was to avoid waters controlled by the United Arab Emirates.[18] See Iranian-Oman export offshore Pipeline.

Qatar and Oman LNG

In August 2017 a Qatar shipping company, Milaha Maritime and Logistics, moved its hub from UAE to Oman. Blockading countries, led by Saudi Arabia, had denied Qatar access to their ports. Normally Qatar LNG stopped at the UAE’s Jebel Ali FLNG Terminal, Dubai, or in Abu Dhabi. The LNG then smaller boats in route to Doha, Qatar. Jebel Ali was difficult for Qatar to access during the blockade. Oman announced its desire to take Qatar's LNG through its port and it has remained neutral in the Saudi-led blockade. This move to Oman threatened Dubai’s status as a regional financial hub.[19]

Industry analysts believe that both Kuwait's Mina Al-Ahmadi LNG Terminal and Oman will financially benefit from LNG trade transactions that used to take place in the UAE. Qatar Petroleum chief told Al Jazeera on July 2017 that at 7 million tons a year his country was the world's biggest LNG exporter.[19]

Expansion projects

Debottlenecking Project

In 2020, a bottlenecking plan was announced that would increase the terminal's total nameplate capacity to 11.4 mtpa.[20] As of September 2021, it was still ongoing.[21] The project was reported to be finished in 2023.[1]

  • Owner: Government of Oman (51%), Shell (30%), ToalEnergies (5.5), Korea LNG (5%), Mitsubishi (2.8%), Mitsui (2.8%), PTTEP (2%) Itochu (0.9%)[3]
  • Parent company: Government of Oman, Shell, TotalEnergies, Korea LNG, Mitsubishi, Mitsui Group, PTTEP, Itochu Corporation[3]
  • Location: Qalhat, Ash Sharqiyah, Oman
  • Coordinates: 22.6586, 59.40748 (exact)
  • Type: Export[5]
  • Capacity: 1 mtpa[21]
  • Status: Operating[1]
  • Start year: 2022[21][22]
  • Cost:
  • Financing:
  • Associated infrastructure:

Articles and resources

References

  1. ↑ 1.0 1.1 1.2 1.3 "Oman's Changed Gas Fortunes Drive LNG Ambitions". Energy Intelligence. 2023-01-24. Retrieved 2023-07-19.
  2. ↑ 2.0 2.1 2.2 International Group of Liquefied Natural Gas Importers (May 24, 2022). "Annual Report 2022 Edition" (PDF). GIIGNL. Retrieved July 11, 2022.{{cite web}}: CS1 maint: url-status (link)
  3. ↑ 3.0 3.1 3.2 3.3 3.4 "International Group of Liquefied Gas Importers 2023 Annual Report" (PDF). GIIGNL. 2023. Retrieved July 18, 2023. {{cite web}}: |first= missing |last= (help)CS1 maint: url-status (link)
  4. ↑ 4.0 4.1 4.2 4.3 4.4 4.5 "Qalhat LNG Terminal · MC63+6XH Port of Qalhat, Sur, Oman". Qalhat LNG Terminal · MC63+6XH Port of Qalhat, Sur, Oman. Retrieved 2024-06-18.
  5. ↑ 5.00 5.01 5.02 5.03 5.04 5.05 5.06 5.07 5.08 5.09 5.10 5.11 Qalhat LNG, Mechademy, accessed April 7, 2021
  6. ↑ 6.0 6.1 6.2 6.3 6.4 6.5 6.6 6.7 GIIGNL (2024). "GIIGNL Annual Report 2024" (PDF). GIIGNL. Retrieved June 18, 2024.{{cite web}}: CS1 maint: url-status (link)
  7. ↑ "TotalEnergies Extends Partnership with Oman LNG". TotalEnergies.com. 2023-11-02. Retrieved 2024-06-18.
  8. ↑ 8.0 8.1 8.2 8.3 8.4 8.5 "More Oman LNG deals on the cards, 4th train under study: interview". Gas Outlook. Retrieved 2024-06-18.
  9. ↑ 9.0 9.1 9.2 9.3 9.4 9.5 Carpenter, Claudia (April 23, 2024). "Oman LNG looks to fill supply gap starting in 2029 with possible new train". S&P Global. Retrieved June 18, 2024.{{cite web}}: CS1 maint: url-status (link)
  10. ↑ Oman Qalhat LNG Terminal, GEO, accessed April 2017
  11. ↑ [1] Oman LNG, accessed August 2017
  12. ↑ 12.0 12.1 12.2 "Oman: LNG companies merge," The Economist, October 11, 2013.
  13. ↑ "伊藤忠石油開発株式会社". 伊藤忠石油開発株式会社 (in 日本語). Retrieved 2024-06-18.
  14. ↑ AA E James, "Oman LNG’s production hits 8.5 million tonnes," Times of Oman, April 2, 2017.
  15. ↑ 15.0 15.1 "Europe receives first shipment of Oman gas through Croatia". Middle East Monitor. 2023-05-17. Retrieved 2023-07-20.
  16. ↑ "Oman LNG eyes expansion of Qalhat plant capacity to 12mln tonnes per year". Retrieved 2023-07-20.
  17. ↑ 17.0 17.1 17.2 17.3 17.4 Staff, LNG Prime (2024-04-25). "Oman LNG delivered 173 cargoes last year, revenue reached $4.9 billion". LNG Prime. Retrieved 2024-06-18.
  18. ↑ 18.0 18.1 18.2 18.3 Reuters Staff, "Iran, Oman reaffirm gas export project, change pipeline route to avoid UAE,"Reuters, February 7, 2017.
  19. ↑ 19.0 19.1 "Qatar shipping company moves hub from UAE to Oman," Hellenic Shipping News, August 11, 2017.
  20. ↑ LNG World Report, IGU, 2020
  21. ↑ 21.0 21.1 21.2 Carpenter, Claudia; Saadi, Dania (2021-09-22). "Oman LNG's train 1 back to full capacity after outages, debottlenecking ongoing: CEO". www.spglobal.com. Retrieved 2022-06-29.
  22. ↑ "Oman LNG Debottlenecking Set For 2022 Completion". MEES. Retrieved 2022-06-29.

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