Technip Energies scoops Oman EPC contract

Thursday, 08 February 2024
Free Read

Plans for an LNG bunkering hub in Oman, powered by renewable energy, have advanced with French engineering and technology firm Technip Energies selected to carry out engineering, procurement and construction.

The project is estimated to require investment of at least US$1 billion and development will be undertaken by Marsa LNG, a joint venture between TotalEnergies and Omani firm Almuzn LNG.

“The LNG plant will be built on land that has already been reclaimed in the Sohar Industrial Port Area (SIPA), located in the Wilaya of Liwa in the Governorate of North Al Batinah,” a spokesperson for the partners said.

TotalEnergies maintains a controlling 80% stake in Marsa LNG with the remainder owned by Almuzn, a wholly owned subsidiary of Omani integrated energy group OQ.

Technip Energies was selected from a shortlist of three contenders for the large scale Engineering, Procurement and Construction (EPC) contract, beating JGC Corporation of Japan and McDermott of the US.

Gateway fuel

The new complex will be fed by a planned liquefaction plant, with capacity of 1 million tonnes per annum (mtpa) and the developers aim to create a major regional destination for LNG bunkering.

“LNG is the cleanest marine fuel solution available at scale, delivering a range of benefits in helping to drive down GHG emissions whilst improving ports’ air quality with assurance that the fuel does not release any black carbon.,” Jérôme Leprince-Ringuet, Vice-President Marine Fuels, TotalEnergies, said. “Crucially, LNG also provides us with the gateway to the development of next generation solutions, including lower carbon bioLNG, which I believe will serve as an important pathway to enable the shipping sector in reaching its decarbonization goals.”

Gas for the project will be delivered and processed at the LNG Plant will be supplied through the OQGN network, which is Oman's exclusive gas transportation system operator.

Solar power

A new solar energy project is also planned for the site, a short distance from Sohar Port, and will rely on photovoltaic systems.

“The LNG plant will consume around 44% of the energy produced by the Solar Plant during the day through power wheeling agreements with OETC for usage of their grid network for power supply. Night-time electricity will be procured from the OETC Grid through the same dedicated power connection,” the partners state.

An initial environmental study was complete by TotalEnergies in November and the project now requires permitting by the Environmental Authority, to be delivered through the Sohar Industrial Port Company (SIPC). Omani group Five Oceans Environmental Services has been appointed in partnership with ERM to undertake the Environmental and Social Impact Assessment (ESIA) as an independent environmental consultancy. 

Related Video

Free Read