Oman signs ten-year gas supply deal with Turkey
Oman LNG has signed a longterm agreement with Turkey's BOTAS Petroleum Pipeline Corporation to supply 1mn metric tonnes of liquefied natural gas (LNG) every year for ten years.
As per the binding term-sheet agreement signed with BOTAS, Oman LNG will start supplying gas to Turkey in 2025.
The agreement helps strengthen its partnerships with international firms in the energy and LNG industry, Oman LNG said in a press statement issued on Monday.
The agreement was signed by Hamed al Naamany, CEO of Oman LNG, and Burhan Ozcan, chairman of BOTAS, in Muscat in the presence of H E Salim al Aufi, Minister of Energy and Minerals.
Speaking after the signing ceremony, Naamany said, "Signing this term-sheet agreement with BOTAS supports our efforts to further develop our position in the global energy and LNG industry and explore new markets with key industry partners. This step complements our commitment to add value to the local economy through growth and collaborations with international partners such as BOTAS.”
Quoting Turkey's Energy and Natural Resources Minister Fatih Donmez, Turkey's official Anandolu Agency on Monday reported that the country will receive 1.4bn m3 of gas from
Oman annually under the new ten-year contract.
“The new gas purchase agreement with Oman also includes an opportunity to be extended further if needed,” Donmez said in his opening speech at the Summit of Century of Turkey in Energy organised for the first time in Istanbul.
"At a time when the world, especially Europe, is suffering from gas supply problems, Turkey is taking all steps to become a gas trade centre," he added.
Recently, several international energy firms signed long-term agreements with Oman LNG to import LNG from the sultanate.
On January 18, 2023, Oman LNG signed two binding termsheet agreements with Thailand’s PTT Global LNG and French energy giant Totalenergies to supply a total of 1.6mn metric tonnes of LNG annually starting 2025.
These agreements will see Oman LNG supplying PTT Global LNG with a total volume of 0.8mn metric tonnes of LNG per annum for a nine-year period, starting 2026, and 0.8mn metric tonnes per annum to Totalenergies for a total duration of ten years starting from 2025.
On December 27, 2022, three Japanese companies signed longterm agreements with Oman LNG to import 2.35mn tonnes of LNG annually from the sultanate. The agreements with Oman LNG were signed by Japan’s biggest power generation company JERA Co and trading firms Mitsui & Co and Itochu Corporation for the production and delivery of LNG starting from 2025.
Signing this agreement supports our efforts to further develop our position in the global energy and LNG industry
Hamed al Naamany