Oman LNG takes deals to six after signing up French major TotalEnergies and Thailand’s state company PTT

Thursday, 19 January 2023
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Oman LNG, the expanding producer on the Arabian Peninsula, has signed two more supply agreements with TotalEnergies and Thailand’s oil and gas firm PTT for a combined 1.6 million tonnes per annum of cargoes after also signing similar deals recently with three Japanese companies and Shell.

The company said it signed separate deals to supply the Thais and TotalEnergies each with 800,000 tonnes of LNG from 2025.

A statement said the binding term-sheet deals were signed by the Chief Executive of Oman LNG, Hamed Al-Naamany, with the Managing Director of PTT Global LNG, Ratchada Lertwanichwatanam, and with the TotalEnergies Senior Vice President of LNG Thomas Maurisse.

“The signing of the term-sheet agreements with PTT Global LNG and TotalEnergies enhance our efforts to further grow and strengthen our market positions including new business opportunities,” said Oman LNG’s Al-Naamany.

“Such a step complements our mission to add value to the local economy through increasing capacity, and strengthening collaborations with international firms,” he added.

The 10-year supply deal with TotalEnergies is scheduled to begin in 2025, while Thailand’s shipments begin a year later in 2026.

Japan deals

Oman LNG last month signed similar deals with top Japanese electricity generator JERA, and trading houses Mitsui & Co and Itochu Corp, to supply a combined 2.35 million tonnes per year, starting in 2025, for up to 10 years.

JERA confirmed its deal on December 27 and it was in the form of a preliminary term sheet that could lead to a Sales and Purchase Agreement.

The deal for JERA is for up to 12 cargoes per year from 2025. JERA noted that LNG procurement competition had been intensifying and stable procurement of fuel in a timely manner was necessary to secure a stable supply of energy in Japan.

The Japanese deals were on a free-on-board (FOB) basis, using their own ships, which they would regard as more flexible.

Oman LNG signed a similar deal - making six in total in the past two months - with Shell International Trading for 800,000 tonnes per annum for 10 years from 2025. 

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