Oman Oil Co (OQ) has inked agreements and a memorandum of understanding related to LNG and green hydrogen
The country’s energy ministry also signed a letter of intent with Oman Shell company to explore opportunities for the production of liquefied synthetic gas (LSG) in Oman.
LSG is produced when green hydrogen is combined with captured carbon dioxide to produce natural gas which is then liquefied. The gas can be directly introduced to existing gas networks and infrastructure, including the LNG stations of the Oman LNG Co, all the way to the end user.
The agreement was signed by Oman Minister of Energy and Minerals Salim Nasser Al Aufi, and Oman Shell senior vice president and country chair, Walid Hadi.
Mr Al Aufi said, “This agreement is evidence of our confidence in the future of the Sultanate of Oman as a multiple energy source hub, as well as the rapid development of its interest in renewable energy and green hydrogen production. The Ministry works with care to achieve optimal utilisation of the Sultanate of Oman’s natural resources, by employing capabilities and modern technologies in the fields of energy with our partners in the sector.”
Additionally, Oman LNG Co and Shell International Trading Middle East signed agreements to supply 0.8 mta of LNG from Oman LNG to Shell for 10 years beginning 2025.
Oman LNG chief executive Hamed Al Naumani commented, “This agreement leverages the opportunities to place Oman LNG in a very competitive market, with strong partners allowing us to grow our market access.”
The companies are also jointly developing a green hydrogen chain in Oman after acquiring a 35% shareholding interest in the Green Energy Oman project. The companies envision the multi-phase project will produce roughly 1.8M tonnes of green hydrogen at full capacity.
OQ chief executive of alternative energy Najla Zuhair Al Jamali said, "The entry of Shell to this vital project constitutes a qualitative step that will enable the consortium to benefit from their advanced global expertise in this field. This will surely contribute to achieving the desired objectives of the project. Shell is a pioneering company in the alternative energy sector and entertains great technical and practical experience that would directly help in developing all phases of the project.”
Mr Hadi added, “This will be Shell’s first long-term LNG offtake from Oman and the agreement supports continued production from Oman LNG into the 2030s. We’re proud of the contribution we have made to the success of the venture to date and pleased to be deepening our relationship.”
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