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TotalEnergies starts integrated gas strategy in Oman

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LNG Industry,

In line with its growth strategy in gas and LNG, a fuel contributing to the energy transition, TotalEnergies has announced the start of gas production from onshore Block 10 in the Sultanate of Oman, as well as an agreement with Oman LNG for a long-term LNG purchase contract.

Start of gas production from Block 10

TotalEnergies has announced the start of gas production from the Mabrouk North-East field in the onshore Block 10. TotalEnergies holds a 26.55% interest in Block 10, with OQ holding 20% and Shell, operator, holding 53.45%.

Gas production is expected to reach 500 million ft3/d by mid-2024. The produced gas will supply the Omani gas network, feeding both local industry and LNG export facilities. This production start-up follows the signing of the concession agreement in December 2021.

Long-term LNG purchase contract

TotalEnergies has also signed an agreement with Oman LNG for the purchase of 0.8 million tpy of LNG over a period of 10 years, starting from 2025.

This new contract will contribute to TotalEnergies' LNG integrated portfolio and reinforce its flexibility, by allowing to address both the European and Asian markets. This LNG will contribute to the reduction of emissions into the atmosphere since it will allow the electric utilities who purchase this gas to substitute it for coal, thus avoiding carbon dioxide (CO2) emissions (a natural gas power plant releases about half as much CO2 as a coal power plant).

“These announcements are consistent with the ambition of TotalEnergies to contribute to the energy transition and reinforce its long-standing partnerships with both Oman LNG and the Omani State,” said Patrick Pouyanné, Chairman and CEO of TotalEnergies. “TotalEnergies deploys in Oman its multi-energy strategy in oil, gas and renewables and so participates in the sustainable development of the country’s natural resources.”

TotalEnergies has recently signed 30 MW of Solar projects in Oman, including a project to supply Sharqiyah Desalination Company (17 MW), in joint-venture with Veolia.

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