LNG

Starting in 2026, Oman LNG will partner with Vitol Asia under a newly signed agreement covering the optimization of up to 0.8 million metric tonnes per annum (mtpa) of LNG on a delivered ex-ship (DES) basis. The cooperation enhances Oman LNG’s flexibility from DES commitments and allows it to better align with buyers demand for more adaptable contracts.

Swiss-based Vitol – a trusted partner of Oman LNG and a key portfolio trader – is meant to help Oman LNG unlock new value by helping the state-run Middle Eastern LNG exporter to enhance its portfolio’s flexibility and responsiveness to shift in a global gas market, said Mahmoud al Baloushi, Chief Commercial Officer of Oman LNG.

The cooperation agreement was signed in Muscat in the presence of Oman’s energy minister Salim bin Nasser al Aufi.

“This agreement with Vitol highlights our agility and ability to adapt to changing market conditions,” said Hamed al Naamany, CEO of Oman LNG. He pointed out there was a “continued positive market response to Oman’s gas and LNG strategy.”

Prioritising RES to sell more LNG abroad

Oman’s domestic energy mix has been shifting towards renewables as the government seeks to free up more volumes of natural gas for liquefaction and sale abroad.

As a consequence, Oman Electricity Transmission Company (OETC) is prioritising dispatch of renewables and other clean power sources over conventional gas-based output. Operational are currently a 50 MW wind farm in Dhofar and 500 MW solar PV capacity at Ibri, but over the next six years some 1.5 GW of solar projects along with 1 GW of wind capacity are slated for development.

Lowering the reliance on gas-fired power, frees up fuel for export: Oman LNG in April last year signed a sales and purchase agreement (SPA) with BOTAS of Turkey to supply 1 mtpa of LNG to Botas over a 10-year period, starting from mid-2025.