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Oman LNG Inks Sales and Purchase Deal with Shell for Annual Delivery of 1.6 MTPA
Oman LNG Inks Sales and Purchase Deal with Shell for Annual Delivery of 1.6 MTPA

Oman LNG Inks Sales and Purchase Deal with Shell for Annual Delivery of 1.6 MTPA

  • 18-Apr-2024 5:50 PM
  • Journalist: Peter Schmidt

Oman LNG has recently announced a significant milestone in its partnership with Shell International Trading Middle East Limited (SITME), unveiling the signing of a pivotal Sales and Purchase Agreement (SPA). This agreement solidifies a commitment to deliver up to 1.6 Million Metric Tonnes Per Annum (MMTPA) of LNG over a decade, commencing in 2025. Such a substantial collaboration marks a notable stride in the enduring relationship between the two entities, with Shell emerging as the foremost off-taker of LNG from Oman LNG.

Hamed Mohammed Al Nu’amani, CEO of Oman LNG, articulated the significance of this agreement, emphasizing Shell's ascension as their principal long-term buyer. He underscored the profound trust and confidence Shell has placed in Oman's LNG, illustrating a pivotal moment that fortifies their alliance with a prominent industry partner. Al Nu’amani further highlighted the agreement's potential to broaden LNG market access, fostering opportunities for expansion and collaboration.

By consummating this SPA, Oman LNG not only reaffirms its standing as a reliable LNG supplier but also showcases its adeptness in proficiently managing business operations. This strategic move reinforces Oman's commitment to furnishing secure and sustainable energy solutions to global clientele, thus bolstering its reputation on the international stage.

In response, Walid Hadi, Senior Vice President and Country Chairman of Shell in Oman, echoed the sentiment of strategic significance. He lauded the agreement as a valuable addition to Shell's LNG and integrated gas portfolio, instrumental in meeting the escalating demand for flexible and dependable energy resources worldwide. Hadi expressed Shell's pride in assuming the mantle of the largest private shareholder in Oman LNG for the ensuing decade, underscoring the enduring partnership's mutual benefits.

The strength of this agreement is underpinned by Oman LNG's sterling reputation as a dependable and esteemed LNG supplier across the globe. Leveraging effective business processes, Oman LNG consistently delivers clean energy solutions to customers worldwide, ensuring safety, reliability, and environmental sustainability.

Moreover, the LNG facility situated in Qalhat, Sur, boasts substantial processing capabilities, capable of accommodating additional volumes. In 2023, the plant's production rate soared to 11.5 MMTPA, surpassing the enhanced nameplate capacity. This remarkable feat underscores Oman LNG's operational excellence and capacity to meet evolving market demands efficiently.

In summary, the signing of the SPA between Oman LNG and Shell represents a landmark achievement, emblematic of a steadfast partnership committed to delivering excellence in the global LNG market. As both entities navigate the evolving energy landscape, this agreement serves as a testament to their shared vision of sustainability, reliability, and innovation in energy provision.

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