OCTOBER 24, 2023
Energy giants welcome Oman LNG shareholder extensions
MUSCAT : International energy giants with stakes in Oman LNG have welcomed agreements signed with the Omani government on October 23, 2023, extending their shareholding interests in LNG businesses in the Sultanate of Oman beyond 2024.
The agreements effectively guarantee a new lease of life for majority state-owned Oman LNG beyond its existing mandate that comes to an end in 2024.
Further, with the Omani government committing to provide feed gas for another 10 years through to 2034, the latest pacts also bolsters Oman LNG’s prospects to stay in operation well into the future as it prepares for an eventual transition to low-carbon and green energy fuels.
Based on the agreements concluded on Monday, Oman LNG’s shareholding structure will continue with: Oman Investment Authority, Shell Gas BV, Total Energies, Korea LNG, Mitsui & Co, Mitsubishi Corporation, PTT Exploration and Production, as well as ITOCHU Corporation. Sister company Qalhat LNG’s shareholding will continue with: Oman Investment Authority, Oman LNG LLC, ITOCHU Corporation and Mitsubishi Corporation.
Japanese general trading conglomerate Mitsubishi Corporation, with minority stakes in both Oman LNG and Qalhat LNG, stated: “By maintaining its interests in the Oman LNG Businesses, MC will further deepen friendly relationship with the Sultanate of Oman and will also contribute to both stable supply of energy and low/decarbonized social and economic activities.”
Global trading and investment giant Mitsui & Co added: “Through this extension of the project, Mitsui will contribute to the securing of a stable supply of sustainable energy, further deepen its relationship with the Omani government, and promote business development in Oman.”
Mitsui has a 2.77 per cent stake in Oman LNG, and an indirect stake in Qalhat LNG through its shareholding in Oman LNG.
The agreements also ensure a continued role for supermajor Shell Gas as the largest private shareholder in Oman LNG with a 30 per cent shareholding, in addition to its role as Technical Adviser.
“Shell is proud of its role as the largest private shareholder, off-taker and technical adviser in Oman LNG,” said Zoë Yujnovich, Shell’s Integrated Gas and Upstream Director. “We believe liquefied natural gas’s (LNG) role in the energy system will continue to grow, and this milestone further demonstrates our commitment to our integrated gas business and to Oman as a key heartland to Shell.”
Significantly, Shell is also set to emerge as the largest LNG offtaker from Oman LNG. Based on previously signed term sheets, Shell International Trading Middle East FZE will offtake up to 1.6 million tonnes per annum of LNG from Oman LNG from 2025 to 2034.