RIYADH: British multinational oil and gas company BP is on track to receive 1 million tons of Omani liquefied natural gas annually starting in 2026 amid a new agreement.
The deal, inked with Oman Liquefied Natural Gas, will last for nine years, the Oman News Agency reported.
This agreement falls in line with the Omani company’s efforts to strengthen its global presence.
“The importance of this agreement is to create new opportunities to renew the Sultanate of Oman’s presence on the global energy trade map, noting that the agreement will contribute to increasing LNG revenues, supplying the national economy and raising the gross domestic product,” CEO of Oman LNG Hamed Al-Naumani said.
Al-Naumani went on to stress that the entity continuously exerts efforts based on its reputation as a certified LNG source.
He further emphasized that the firm intends to produce and export LNG to achieve support for global energy security and the national economy.
In August, Oman LNG signed a partnership agreement with the German company Securing Energy for Europe to supply 0.4 million tons of LNG per annum.
According to a statement released at the time, 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.
In January, Oman LNG agreed to supply up to 1.6 million tons of LNG to France’s TotalEnergies and the Thai state-owned firm Petroleum Authority of Thailand.
The deal will see TotalEnergies and PTT each receive 800,000 tons of LNG annually. While the French firm struck a 10-year agreement 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 the product to various locations.
