LNG

Oman LNG, the second main exporter in the Middle East, has named a new Chief Executive to replace Harib Al-Kitani, the long-standing incumbent who has overseen the return of stable feed-gas supplies and the updating of facilities and strategy.

A statement from the board at the Arabian Peninsula-based company said Al-Kitani would be stepping down and his successor and new CEO was named as Hamed Al-Numani.

Oman exports around 11 million tonnes per annum and its annual dispatch of cargoes covers the main importing nations.

“With a long successful journey of four decades in the industry, Al-Kitani’s experience has contributed tremendously in shaping Oman LNG as a reliable and trusted supplier,” said the board.

Al-Kitani is a veteran of the Sultanate of Oman’s energy industry and has been at Oman LNG from its inception in the late 1990s, holding a series of high-level positions.

“We wish him all the best in his retirement and a big thank you for all he has done to drive our success,” the statement added.

His successor Hamed Al-Numani comes with 20 years of energy industry experience with projects in Europe and the US.

Oman LNG’s customers include South Korea with around 3.9MT of annual supplies, Japan with about 3MT as well as other leading importers like China and India.

Cargo buyers also include Taiwan, Pakistan and Thailand.

The Thai national energy company, PTT Exploration and Production Public Company, has recently agreed to take a 20 percent stake in Oman’s upstream natural gas resources from BP of the UK centred on the onshore Block 61 comprising the ‎Khazzan field, which began production in 2017, and the Ghazeer field, onstream since October 2020.

Block 61, covering around 3,950 square kilometres in central Oman, contains the largest tight-gas ‎development in the Middle East.

Gas from the Block is sent for domestic consumption ‎into Oman’s national gas grid, while also boosting the availability of feed-gas for Oman ‎LNG.

Oman has also planned under Al-Kitani to become a major LNG bunkering nation from its port at Sohar in cooperation with French major Total.

The main Omani LNG export facilities are at the port of Sur. The plant comprises the three amalgamated liquefaction Trains of two former separate companies, Oman LNG and Qalhat LNG.

Al-Kitani also initiated plans for a de-bottlenecking project, whereby better output can be achieved by fixing inefficiencies, both technical and operational, and increasing Oman’s LNG output to 11.5 MTPA or more.

KBR, the US engineering and LNG contractor, was awarded a major project management consultancy services contract for the Ghasha portfolio of gas projects by Abu Dhabi National Oil Company in the United Arab Emirates, the oldest LNG producer in the Middle East.

BP of the UK and Italian energy company Eni have signed an exploration and production sharing agreement with the Sultanate of Oman for a block in the centre of the country amid a revived domestic natural gas sector, rising liquefied natural gas exports and plans for a small-scale LNG plant for maritime fuel.

KBR, the US energy and LNG engineering company, said it was awarded a front-end engineering and design contract by Oman LNG for the debottlenecking of liquefaction facilities at the port of Sur on the Arabian Peninsula.

“This project builds on KBR's extensive track record of developing and implementing LNG projects and providing solutions to complex developments around the world,” said Jay Ibrahim, KBR President for Energy Solution Services.

The Omani facilities export to Japan, South Korea and the spot market and comprise the amalgamated three liquefaction Trains of Oman LNG and Qalhat LNG, now producing more than 10 million tonnes per annum.

The Sultanate has revitalised its LNG production after the Khazzan natural gas discovery by BP and the plants near the port of Sur have been at near nameplate capacity since 2017.

The three Trains had previously suffered from a lack of feed-gas as supplies were diverted to fill domestic gas shortages.

The Omani government allocates Oman LNG feed-gas supplies from various gas fields and the Khazzan field production has ended all resource concerns for the near future.

Houston, Texas-based KBR explained that it would act as an extension to Oman LNG's project team and help manage the overall execution of the debottlenecking efforts, whereby better output can be achieved by fixing inefficiencies, both technical and operational.

“The contract underpins Oman LNG's robust commitment towards knowledge-sharing and boosting staff competency in dealing with such complex projects,” said KBR.

KBR’s Ibrahim said the company was excited to be a part of this important project and to continue to grow and maintain its presence in Oman.

French energy major Total and Oman recently signed an accord for the development of an onshore natural gas block that will provide feed-gas for separate LNG production reserved for LNG fuel for shipping in the Arabian Peninsula.

The deal was signed between Ministry of Oil and Gas of Oman and Total and is linked to the award of exploration licence for onshore Block 12 where there are “significant prospective” gas resources.

Total said it would use its equity gas entitlement as feedstock to develop in Oman a regional hub for LNG bunkering services.

Oman is a major anchorage and stop-over point for tankers and other vessels on trade routes between the Middle East, Asia and Europe.

Total has previously outlined plans for its LNG hub project involving a small-scale modular liquefaction plant to be built near the deepwater port of Sohar in the north on the Gulf of Oman.