Oman Takes Steps Towards Clean Energy Future with Royal Dutch Shell, Signing Agreements for liquefied natural gas, Green Hydrogen and Liquified Synthetic Gas. Walid Hadi, senior vice president and Oman country chair of the UK/Netherlands-headquartered company, announced that a term sheet has been signed between Oman LNG and Shell with the latter to purchase LNG for 10 years starting from 2025.

Shell has been a part of Oman LNG since its foundation in 1994, with a 30 per cent stake. The sultanate’s Ministry of Energy & Minerals (MEMR) owns a majority 51 per cent, while foreign shareholders include TotalEnergies ( 5.54 per cent), Korea LNG (5 per cent), Mitsubishi Corporation ( 2.77 per cent), Mitsui & Company ( 2.77 per cent), PTTEP through Partex acquisition (2 per cent) and Itochu Corporation ( 0.92 per cent).

Shell Forms partnership with Green Energy Oman to optimize 25GW Wind and Solar Power for Green Hydrogen, Ammonia and Liquefied Synthetic Gas. Shell signed a second agreement to join the Green Energy Oman (GEO) consortium which is making progress on a complex project to maximize wind and solar power generation in Al-Wusta and Dhofar governorates.

The project aims to convert this energy into green Hydrogen, produce, store and export green ammonia. The GEO project consortium includes Omani state energy holding company OQ through its subsidiary Oman Energy Development, Hong Kong-based green fuels developer InterContinental Energy (ICE) Limited, Kuwait government-backed clean energy investor and developer Enertech Holding Company KSCC, and Golden Wellspring Wealth Trading.

Additionally, Shell has also signed a letter of intent with MEMR to explore liquefied synthetic gas (LSG) deployment in Oman. Shell Forms partnership with Omani stakeholders for Low-Carbon Gas Production. Royal Dutch Shell has formed agreements with Omani stakeholders to produce Liquefied Synthetic Gas (LSG), produced when renewable Hydrogen combines with captured carbon dioxide, LSG is a low-carbon gas which can be directly introduced to existing gas networks and infrastructure, including LNG plants such as Oman LNG.

The agreement comes one month after Shell announced its intention to explore opportunities in blue ammonia production in the sultanate with MEMR. The project aims to exploit gas resources from Oman’s hydrocarbon Blocks 10 and 11, mainly the Mabrouk field, to produce blue ammonia. The investment decision will only be taken if the project is found commercially feasible.

Meanwhile, Salim al-Aufi, the sultanate’s new energy and mineral resources minister, noted that Shell is evaluating locations such as Sur, Sohar or Duqm for the project's implementation as well as taking into consideration cost of development and production of either ammonia or Hydrogen alone or both combined.

Shell and Partners Develop Natural Gas from Block 10 of Saih Rawl field in Oman. The Ministry of Energy and Minerals of Oman signed a concession agreement in December 2021 with a consortium led by Shell's subsidiary, Shell Integrated Gas Oman to develop and produce natural gas from Block 10 of the Saih Rawl field.

This consortium includes the state energy enterprise OQ and Marsa Liquefied Natural Gas (LNG), a joint venture of TotalEnergies and OQ. Shell has been established as the operator for Block 10 with 53.45% working interest, followed by OQ's 13.36% share and Marsa LNG's 33.19%. Production is expected to begin in 2024, reaching its peak capacity of 500 million cubic feet of gas per day. A separate exploration and production agreement was also signed by Shell and TotalEnergies in September to develop Block 11, rich in natural gas reserves.

Shell and TotalEnergies to Develop Block 11 of Oman's Saih Rawl Field. Royal Dutch Shell and TotalEnergies have secured a 67.5 per cent and 22.5 per cent stake in Block 11 of the Saih Rawl field in Oman, respectively, with the remaining 10 per cent held by state energy enterprise OQ. Shell will be the majority operator for this concession, taking on responsibility for the day-to-day management and planning of operations within the block.