TotalEnergies Chooses Contractor for Significant LNG Project in Oman

TotalEnergies, the French energy giant, has made significant strides in its liquefied natural gas (LNG) terminal project in Sohar, Oman, by selecting an Engineering, Procurement, and Construction (EPC) contractor to lead the project's development. The project, a collaboration between TotalEnergies and Oman's state energy holding company OQ under the joint venture Marsa LNG, seeks to establish a comprehensive facility incorporating upstream units extracting natural gas feedstock from TotalEnergies’ hydrocarbon concessions in Oman, a bunkering terminal at Sohar port, and a solar photovoltaic (PV) plant to power the LNG terminal.

Technip Energies, a France-based company, received a letter of intent from TotalEnergies in January, but the official contract award and final investment decision are pending, as per sources familiar with the matter.

The LNG bunkering terminal, set to process 1 million tonnes annually, is strategically focused on serving vessels, emphasizing TotalEnergies' commitment to sustainable energy solutions. TotalEnergies leads the Marsa LNG joint venture, established in December 2021 with OQ, where TotalEnergies holds an 80% stake, and OQ holds 20%. The Marsa LNG initiative aims to create an integrated facility, extracting natural gas from TotalEnergies’ concessions in Blocks 10 and 11, establishing an LNG bunkering terminal with storage units at Sohar port, and implementing a solar PV plant to provide power to the LNG terminal.

The Marsa LNG terminal, equipped with a single train capable of processing 1 million tonnes annually, primarily focuses on supplying LNG as marine fuel to vessels. The overarching goal is to position Oman as a regional LNG bunkering hub, capable of supplying marine vessels with LNG fuel, boasting an impressive annual production capacity of 1 million tons. This initiative aligns with the global shift towards cleaner energy solutions in compliance with the International Maritime Organization’s (IMO) new sulfur emission limits implemented since January 2020.

The terminal's design facilitates the transition from conventional marine fuel oils to LNG, meeting the strict sulfur emission regulations set by the IMO. The gas required for the LNG production process will be sourced from Block 10, operated by Shell Development Oman with a 53.4% stake, in collaboration with MARSA LNG (33.2% equity) and OQ (13.4% equity). The processed, liquefied gas will be stored onshore, utilizing the OQGN network for supply.

While Technip Energies has received a letter of intent, the final contract award and investment decision remain pending. The Marsa LNG project, led by TotalEnergies, represents a significant step towards enhancing Oman's role in the LNG sector and contributing to the global adoption of cleaner and more sustainable marine fuel alternatives.