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TotalEnergies, OQ to launch LNG bunkering project in Oman

Image: Technip Energies Total LNG hub in Oman
Oman’s Sohar Port is set to house a new LNG bunkering plant following an agreement inked between OQ and TotalEnergies.

TotalEnergies will provide 80 % of the investment, with OQ contributing the remaining 20 % through their joint venture, Marsa Liquefied Natural Gas LLC.  

The Marsa LNG project, the first of its kind in the Middle East, is poised to have significant economic implications.

 “We are proud to open a new chapter in our history in the Sultanate of Oman with the launch of the Marsa LNG project, together with our partner OQ, demonstrating our long-term commitment to the country,” said Patrick Pouyanne, chairman and CEO of TotalEnergies.

“By paving the way for the next generation of very low emission LNG plants, Marsa LNG is contributing to making gas a long-term transition energy,” Pouyanne added.  

The plant, powered entirely by solar energy, is expected to contribute to the reduction of carbon emissions and the shipping industry’s overall carbon footprint. Notably, it is projected to emit less than 3 kg of carbon dioxide per oil equivalent barrel.  

“The Marsa LNG project is one of the many initiatives that reflect Oman’s goal of achieving carbon neutrality by 2050,” the Minister of Energy and Minerals Salim Al-Aufi said.

OQ Chairman Mulham Basheer Al-Jarf commented that “the project will contribute to OQ Trading’s position as a key player in the LNG markets.”

“OQ Gas Network will also provide the necessary gas transportation services to the project,” Al-Jarf added.

A 1 million tonne per capacity LNG liquefaction plant will be built in the port of Sohar, with the LNG production start-up anticipated by 1Q 2028. The LNG is primarily intended to serve the marine fuel market in the Gulf while the quantities not sold as bunker fuel will be off taken by TotalEnergies and OQ.

In addition, a dedicated 300 MWp PV solar plant will be built to cover 100% of the annual power consumption of the LNG plant.