Oman LNG has announced today the signing of binding sheet agreements with three (3) Japanese firms for the delivery of LNG, starting in 2025. ITOCHU Corporation, JERA Co., Inc. and Mitsui & Co, Ltd have become the latest beneficiaries of the Omani LNG for a total of 2.35 million metric tonnes per annum (mtpa) of LNG.
The agreements build on the existing robust partnership between Oman and Japan, where Japan has been a critical market for Oman’s LNG for the last 22 years. The new agreements will see Oman LNG supplying Japan with a total volume of 2.35 mtpa based on contracts varying from 5 to 10 years. The four companies will receive a significant amount of; ITOCHU Corporation, 0.8 MTPA, JERA Co., Inc. 0.8 MTPA, Mitsui & Co., Ltd., 0.75 MTPA.
Such step comes at a significant milestone in the history of Oman LNG, where it complements the company’s strive to renew its contracts for Beyond 2024 with a strong interest to leverage partnership with Japan. This ensures Oman LNG sustains its position in the global LNG market and contributes to global energy security, where it currently continues to play a significant role in delivering clean and reliable energy. We are happy to sustain the growth of this vibrant industry with such partners, which enables us to continue achieving milestones toward Oman Vision 2040.
His Excellency Engineer Salim Al Aufi, Minister of Energy and Minerals, commented on the signing ceremony, "These LNG agreements are a testimony to Oman’s commitment to supply the world with energy. Our partnership with Japan goes far and beyond since inception of Oman LNG. This milestone will not only unlock growth opportunities, but will also sustain and expand our LNG business beyond 2024. Oman will continue to be a reliable supplier of LNG, and a global preferred destination for sourcing clean energy.”
The agreements were signed by Hamed AL Naamany, CEO of Oman LNG, and Mr. Tetsuya Yamada from ITOCHU Corporation, Mr. Hitoshi Nishizawa from JERA Co., Inc. and Mr. Motoyasu Nozaki from Mitsui &Co at the Royal Opera House, Muscat, in presence of HE Eng. Salim Al Aufi, Minister of Energy and Minerals of Oman, Yasutoshi Nishimura, Minister of Economy, Trade and Industry of Japan, as well as high officials, senior delegates representing the Japanese firms and from the Oil and Gas sector from both Oman and Japan.
His Excellency Abdulsalam Al Murshidi, President of Oman Investment Authority (OIA), commented on this milestone by saying that, “the strategic relations and close ties between the Sultanate of Oman and Japan have delivered years of successful collaborations in diverse industries, especially in the LNG sector. We are delighted today to stand and witness a new phase of this relationship in the signing of this agreement which reflects the economic diplomacy adopted by the Sultanate to promote its international standing in the energy sector, and contributes to the objectives of national economic growth in line with the priorities of Vision Oman 2040.”
The agreements are strengthened by the reputation and credibility of Oman LNG as a reliable and trusted LNG supplier around the globe, coupled with the effective management of business processes to produce clean energy delivered to customers around the world safely and reliably. Furthermore, the LNG plant at Qalhat, in Sur, has the capacity to receive and process additional volumes, as it has initiated the Power Project and Debottlenecking Project with its enhanced capacity to 11.6 mtpa.
"The term-sheet agreements, signed today, are the first for Oman LNG for its next phase beyond 2024. Signing with Japan reflects our strong relations with the Japanese government, and Oman LNG’s position as a reliable supplier of LNG worldwide. These agreements are a game changer for Oman and Oman LNG, leveraging the opportunities to continue working with trusted partners, while expanding our market access on the growing opportunities of global energy trade.” He continued “We are confident to create more value and utilising the LNG asset to its maximum potential while also sustaining our Corporate Social Responsibilities and In-Country Value.” said Talal Al Awfi, Oman LNG’s Chairman.
Speaking after the signing ceremony, Hamed Al Namaany, CEO of Oman LNG, said "These agreements complement our efforts to further grow and strengthen our market positions including new business opportunities. This will leverage well the enhanced production and our nationwide commitment towards diversifying the economy, while ensuring economic growth. We are proud to continue growing our global brand built on home-grown capabilities and capacities that are pivotal on the backdrop of energy supply and efficiency."
Oman’s liquefied natural gas industry was born out of the vision of the late Sultan Qaboos bin Said to diversify the country’s economy and has attracted high revenue by harnessing natural gas resources for export as liquefied natural gas. 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.
Oman LNG operates as a joint venture with a shareholding structure comprising the Government of Oman (51%), Shell Gas B.V (30%), Total S.A. (5.54%), Korea LNG (5%), Mitsubishi Corporation (2.77%), Mitsui & Co. (2.77%), PTTEP (Oman) (2%), and Itochu (0.92%).