Oman LNG, BP Singapore ink landmark LNG deal

FROM P13

The country produced its first shipment of liquefied natural gas in 2000 after the first of an initial two-train plant began operations under Oman LNG, established by His Majesty’s Royal Decree in 1994. With a third train under Qalhat LNG, liquefied natural gas has played an even greater role in contributing to the national economy as the two companies, that integrated in 2013 and now operate as Oman LNG, have worked intensely with outstanding success to drive their organisations forward.

The vision realised through liquefied natural gas has now grown to be the largest income earner for the Sultanate, after oil revenues. Beyond its direct contribution to revenue, the country’s two LNG companies have been pivotal to social development, executing a myriad of social investment initiatives that has triggered job creation and entrepreneurship, spread quality education and healthcare, encouraged women’s development and supported tourism, among others.

“This agreement is a game changer for Oman and Oman LNG where it will provide benefits for the Sultanate through the export of new volumes of feed gas to customers in need of reliable, safe, clean energy. Another win is that the agreement will enable the plant to operate at full capacity and thus create more value and utilising the asset at maximum capacity. From the returns generated, Oman LNG can further invest in social projects and in-country value opportunities enhancing the society of Oman at large”, said Harib al Kitani, Oman LNG’s Chief Executive Officer. “Our aim is to serve the community and contribute to all segments of society through the exports of LNG”.

Alan Haywood, Chief Executive Officer of BP Integrated Supply and Trading said, “BP is pleased to expand its longstanding relationship with Oman LNG through the conclusion of this LNG sale and purchase agreement. Following the commencement of production from the Khazzan gas field, this development deepens BP’s commitment to Oman and strengthens our support for the Sultanate’s gas sector.”

The global liquefied natural gas market is expected to develop much faster than the pipeline gas trade, largely due to the flexible nature of liquefied natural gas and its accessibility for countries. As the global energy industry turns to renewables, liquefied natural gas is perfectly positioned to provide solutions for the mid to long term.