MUSCAT: Global multi-energy company TotalEnergies has committed to supporting the financing of the decarbonization efforts of Oman LNG as part of the latter’s drive to become a low-carbon LNG producer.
That commitment is enshrined in recent agreements signed by the French-headquartered energy giant to extend its 5.54 per cent shareholder interest in Oman LNG for ten more years beyond 2024. At the same time, TotalEnergies’ indirect interest in adjoining Qalhat LNG, in which Oman LNG has a large stake, will be extended by five years.
Similar agreements were also signed on October 23, with Oman Investment Authority, Shell Gas BV, Korea LNG, Mitsui & Co, Mitsubishi Corporation, PTTEP and ITOCHU Corporation, effectively extending their shareholder interests in Oman LNG.
As part of these pacts, the shareholders have also pledged to fund initiatives by the LNG producer to reduce its greenhouse gas (GHG) emissions.
One such option being actively promoted by Oman LNG is the Sur Hydrogen and Energy Transition Cluster initiative, centring on a proposal to decarbonise industries in Sur Industrial City through the use of hydrogen.
A feasibility study has envisioned the potential for the production of around 480 tonnes of hydrogen per day through investments in renewable energy components. Oman LNG is seen as a potential beneficiary of natural gas volumes saved by these industries as a result of their switch to hydrogen.
Oman LNG CEO Hamad al Naamany has enthusiastically backed the Sur Cluster initiative. “This would allow us to reduce our own gas consumption to power our plants, and dedicate the excess gas for LNG. We will shift from gas turbines to gas engines that can be enabled to run on green hydrogen,” said the CEO in a recent interview.
“In short, hydrogen will help us decarbonise our own production and enable a much richer energy mix. That is why Oman LNG has been pioneering the Sur hub concept – because we should not look at hydrogen in isolation, but should see it in combination with the other energy means to capitalise on it the most,” he further added.
TotalEnergies says its pledge to finance emission reduction efforts at Oman LNG aligns with its own drive to support environmental sustainability.
The Paris-headquartered company, billed as the world’s third largest low-carbon energy player, is already a significant offtaker of the Omani company’s LNG production. Under an agreement signed in January 2023, TotalEnergies committed to offtake 0.8 million metric tonnes of LNG from Oman LNG for a period of 10 years starting in 2025.
The partnership extension, TotalEnergies said, underscores its commitment to sustainable energy solutions and its continued collaboration with Oman LNG.
“We are pleased to extend our partnership with Oman LNG. This LNG contributes to our supply of Europe and Asian markets, and strengthens our integrated and flexible global portfolio, in line with TotalEnergies’ ambition to increase its LNG production and long-term purchases by 50 per cent by 2030,” added Julien Pouget, Senior Vice President Middle East & North Africa, Exploration & Production at TotalEnergies.
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