RIYADH: In a move to strengthen its global presence, Oman LNG has struck a partnership agreement with the German company Secure Energy for Europe to supply 0.4 million tons of liquefied natural gas per annum.
The four-year contract, which will see Oman LNG beginning the supply in 2026, is part of the firm’s strategy to tap new opportunities in the European energy markets.
“The term-sheet signing with SEFE marks another milestone. Going further, the agreement leverages our constant efforts to add value to Oman’s economy through growth and collaborations,” said Mahmoud Abdulsatar Al-Balushi, chief commercial officer at Oman LNG, in a statement.
The company’s CEO Hamed Al-Naamany and SEFE’s chief commercial officer Frederic Barnaud inked the term-sheet agreement, while Oman’s Minister of Energy and Minerals Salim Nasser Al-Aufi presided over the event.
“As pioneers among German companies to embark on this partnership, SEFE is proud to lead the way toward enhanced collaboration,” said SEFE CEO Egbert Laege.
The deal underpins the Gulf country’s standing as a trustworthy LNG source and reinforces its ability to generate reliable energy and efficiently deliver it to clients globally, according to a press release.
In January, Oman LNG agreed to supply up to 1.6 million metric tons of LNG to France’s TotalEnergies and Thai state-owned firm PTT.
According to the deal, TotalEnergies and PTT will each receive 800,000 tons of LNG annually. While the French firm struck a 10-year deal beginning in 2025, the Thai company agreed on a nine-year contract from 2026.
Oman has emerged as one of the leading players in the global LNG market, with an operational capacity totaling 10.4 million tons per annum as of April 2023, according to the International Gas Union’s World LNG Report.
The firm’s LNG exports saw an annual increase of 11.3 percent in 2022 thanks to Oman’s unique geographic position, which allows for easy transportation and delivery of LNG to various locations.
In addition to making significant commitments to environmental sustainability with carbon-offset initiatives, the country has also heavily invested in LNG infrastructure like liquefaction facilities and export terminals.
