Oman LNG to Supply 0.4 Million MTPA of LNG to Europe

Oman LNG to Supply 0.4 Million MTPA of LNG to Europe

/ Oil & Gas / Tuesday, 22 August 2023 04:56

Oman LNG has announced the signing of a binding term-sheet agreement with SEFE Secure Energy for Europe (SEFE) to supply 0.4 million metric tons per annum (MTPA) of LNG starting in 2026. 

With this development, SEFE has become the latest beneficiary of Omani LNG, marking the first LNG term deal with a German firm — a milestone for both countries and opening doors for new opportunities in the European markets.

The signed term-sheet agreement covers the supply of a total volume of 0.4 million MTPA of LNG from Oman LNG to SEFE. The agreement is based on a 4-year contract, starting in 2026. Signing term-sheet agreements beyond 2024 emphasizes Oman LNG's role in sustaining Oman's reputation as a reliable, trusted and safe LNG supplier to customers around the world.

The agreement was signed by Hamed Al Naamany, chief executive officer, Oman LNG, and Dr. Egbert Laege, chief executive officer, SEFE, in the presence of H.E. Eng. Salim bin Nasser al Aufi, Minister of Energy and Minerals, and H.E. Thomas Friedrich Schneider, Ambassador of the Federal Republic of Germany to the Sultanate of Oman.

Mahmoud Al-Baloushi, chief commercial officer, Oman LNG, said, "The term-sheet signing with SEFE marks another milestone where the Omani LNG will be accessing new markets through Germany and beyond.

"The partnership with Oman LNG diversifies SEFE's portfolio and reinforces our efforts to continue to reliably supply Europe with energy," said Dr. Laege.

Oman's liquefied natural gas industry dovetails with the vision of the late Sultan Qaboos bin Said to diversify the country's economy and has attracted high revenue by harnessing natural gas resources for export as liquefied natural gas.

Although Europe has largely replenished gas stockpiles disrupted by the war in Ukraine, there are fears that shortages and strong demand in Asia could rapidly put the squeeze on supplies.

Also read: Qatar Signs Second 27-Year LNG Supply Deal With China’s CNPC

 Also read: QatarEnergy and Sinopec Sign ‘Longest Gas Supply Deal’

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