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French energy major TotalEnergies and Oman National Oil Co. (OQ) on Monday announced the final investment decision (FID) of the Marsa LNG project.
Marsa LNG, a partnership of TotalEnergies (80%) and OQ subsidiary Almuzn LNG LLC (20%) set up in 2021, is developing the 1 million tonne capacity LNG project to serve as a bunkering and export terminal.
TotalEnergies also signed a Sale and Purchase Agreement (SPA) with Oman LNG to offtake 0.8 Mtpa of LNG for 10 years from 2025, making the company one of the main offtakers of Oman LNG's production, a statement from the French energy major read.
Additionally, TotalEnergies and OQ Alternative Energy, the national renewable energy company, have confirmed being at an advanced stage of discussions on a joint renewables project -- a portfolio of up to 800 MW, including the 300 MWp solar project-- that will supply Marsa LNG. TotalEnergies will hold a 49% stake while OQ Alternative Energy will have 51%.
TotalEnergies, which has been present in Oman since 1937, produced 61 barrels of oil equivalent per day (BOE/D) in Q1 2024.
The company produces oil in Block 6 (4%), natural gas in Block 10 (26.55% via Marsa LNG LLC) as well as LNG through its participation in the Oman LNG (5.54%)/Qalhat LNG (2.04% via Oman LNG) liquefaction complex with an overall capacity of 11.4 Mtpa.
TotalEnergies is currently conducting exploration activities in Block 12 (50%, operator), and is appraising Block 11 (22.5%). (See map)
(Writing by Brinda Darasha; editing by Seban Scaria)
