Oman LNG Inks 10-Year Gas Supply Deal with Turkey’s Botas Petroleum
Oman LNG Inks 10-Year Gas Supply Deal with Turkey’s Botas Petroleum

Oman LNG Inks 10-Year Gas Supply Deal with Turkey’s Botas Petroleum

  • 22-Apr-2024 2:25 PM
  • Journalist: Harold Finch

Oman LNG Company made headlines on Friday with the announcement of a freshly minted sales and purchase agreement (SPA) inked with Turkey’s Botas Petroleum Pipeline Corporation. The deal entails Oman LNG supplying 1 million metric tonnes per annum of liquefied natural gas (LNG) to Botas Petroleum for a duration of 10 years, commencing in 2025. This agreement is crafted to capitalize on the synergies between Oman LNG and Botas while tapping into Oman's established reputation as a dependable LNG provider. The sales and purchase agreement with Botas enhances Oman LNG access to a new market through the offtake of 1 million tonnes of LNG per annum from Oman. Additionally, it strengthens the Oman LNG portfolio through Delivered Ex-Ship (DES) contracts to strategic partners located in Eurasia, a growing market.

Turkey assumes a pivotal role as a significant gateway to Central and Eastern Europe in the energy sector. Positioned strategically, Turkey serves as a crucial energy hub and a vital link between Europe and Asia. Its extensive pipeline network and well-established infrastructure facilitate the seamless transportation of energy resources, including LNG, to diverse destinations. Not only does this agreement reinforce Oman LNG’s status as a reliable LNG supplier, but it also underscores the company's ability to adapt to the evolving dynamics of the global energy landscape.

In a noteworthy development, Oman LNG has recently sealed three gas supply agreements. Earlier in the week, the company entered into a substantial sales and purchase agreement with Shell International Trading Middle East, committing to deliver up to 1.6 million metric tonnes per annum of LNG over a decade, starting in 2025. This agreement marks a significant milestone in the enduring partnership between the two entities, with Shell emerging as the largest recipient of LNG from Oman LNG.

Furthermore, Oman LNG sealed a significant sales and purchase agreement with JERA, Japan’s largest power company, pledging to supply 0.8 million metric tonnes per annum of LNG for 10 years, also beginning in 2025. As part of its overarching global marketing strategy, Oman LNG has successfully secured multiple long-term gas supply agreements since the onset of 2023. Notably, in March, Oman LNG finalized a sale and purchase agreement with Germany’s SEFE (Secure Energy for Europe) to deliver 0.4 million metric tonnes of LNG annually to Germany. This milestone pact underscores the strategic energy partnership between Germany and Oman, with SEFE marking its debut as the first German entity to engage in LNG procurement from Oman.

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