Oman LNG signs 10-year gas supply deal with Shell

Oman LNG Company announced on Wednesday the signing of a major sales and purchase agreement (SPA) with Shell International Trading Middle East to deliver up to 1.6mn metric tonnes per annum of LNG for a 10-year period, starting in 2025.

This agreement represents a significant milestone in the ongoing collaboration between the two entities, with Shell emerging as the largest offtaker of liquefied natural gas from Oman LNG.

Hamed al Naamany, CEO of Oman LNG, emphasised the importance of this deal, saying, "This agreement positions Shell as our primary long-term buyer and solidifies a crucial partnership with a major industry player. It not only reflects Shell's confidence in Oman LNG'S product but also fosters opportunities for further expansion in the LNG market."

By entering into this SPA, Oman LNG not only reaffirms its status as a reliable LNG provider but also demonstrates its proficiency in efficiently managing business operations to deliver secure and sustainable energy to global customers.

Walid Hadi, Senior Vice President and Country Chairman of Shell in Oman, said, “This agreement strengthens our LNG and integrated gas portfolio, enabling us to meet the increasing demand for flexible and reliable energy from our global clientele. Shell takes pride in its role as the largest private shareholder in Oman LNG for the next decade.”

This deal enhances Oman LNG'S reputation as a dependable and trusted LNG supplier worldwide, showcasing its ability to produce clean energy safely and reliably.

Oman LNG has emerged as the second-largest income generator for the sultanate, following oil revenues.

The SPA with Shell follows agreements signed in October 2023 to extend shareholding and gas supply agreements for Oman LNG until 2034, with Shell being the largest private shareholder.

As part of its global marketing efforts, Oman LNG has secured several long-term gas supply agreements since the beginning of 2023.

On Tuesday, Oman LNG signed a significant sales and purchase agreement with JERA, Japan’s largest power company, committing to supply 0.8mn metric tonnes per annum of LNG over 10 years, starting in 2025.

In March, Oman LNG finalised a sale and purchase agreement with Germany’s SEFE (Secure Energy for Europe) to deliver 0.4mn metric tonnes of LNG annually to Germany. This landmark agreement signifies a significant milestone in the strategic energy partnership between Germany and Oman.

The agreement represents a significant milestone in the ongoing collaboration between two entities, with Shell emerging as the largest offtaker of liquefied natural gas from Oman LNG