Shell Oman has signed a Letter of Intent with Oman’s Ministry of Energy and Minerals to explore the deployment of Liquified Synthetic Gas (LSG) in Oman.

LSG is produced when renewable hydrogen is combined with captured carbon dioxide to produce natural gas which is then liquefied. This low-carbon gas can be directly introduced to existing gas networks and infrastructure, including LNG plants such as Oman LNG, all the way to the point of use, said Walid Hadi, Senior Vice President, Country Chair, Shell Oman in a Linkedin post.

In another agreement, Shell Oman has taken a 35 percent stake in Green Energy Oman (GEO), the consortium that is developing the country’s largest renewable green hydrogen project in Al Wusta and Dhofar governorates, Oman.  The hydrogen will be produced from up to 25 gigawatts of solar and wind energy.

Other members of this consortium include OQ (through its subsidiary Oman Energy Development), InterContinental Energy, EnerTech Holding Company, KSCC and Golden Wellspring Wealth for Trading. Worley is providing concept feasibility study services for the project.

The third agreement pertains to a long-term LNG offtake agreement. Shell Oman has signed a term sheet with Oman LNG for the purchase of 0.8 million metric tonnws per year of liquefied natural gas (LNG) for a period of 10 years, starting from 2025.

(Writing by Sowmya Sundar; Editing by Anoop Menon)