Oil major TotalEnergies has taken a final investment decision (FID) for the Marsa LNG project in Oman
Last week, on a visit to the sultanate, TotalEnergies chairman and chief executive Patrick Pouyanné and his counterpart at Oman National Oil Co (OQ), Mulham Basheer Al Jarf announced the FID of the Marsa LNG project.
TotalEnergies (80%) and OQ (20%) operate a joint company, Marsa Liquefied Natural Gas (Marsa) that will oversee the upstream production of 150 Mcf/d of natural gas in the Mabrouk North-East field on onshore Block 10, which will provide the required feedstock for the Marsa LNG plant.
The French major had signed a 10-year sale and purchase agreement with Oman LNG to offtake 0.8M tonnes per annum (mta) of LNG from 2025.
Marsa holds a 33.19% interest in Block 10 where production started in January 2023 and reached plateau this month. The FID will allow Marsa LNG to extend its rights in Block 10 until its term in 2050.
The company will also build and operate a 1-mta downstream gas liquefaction plant. The facility will be built in the Omani port of Sohar with LNG production expected to start by Q1 2028. It is primarily intended to serve the marine fuel market in the Gulf. LNG quantities not sold as bunker fuel will be off-taken by TotalEnergies and OQ.
The project also encompasses a renewable power generation facility. The partners will build a dedicated 300-MW PV solar plant to cover 100% of the annual power consumption of the Marsa LNG plant. OQ Alternative Energy holds a majority stake (51%) with TotalEnergies (49%) a minority partner in this facility.
TotalEnergies and OQ intend to jointly develop a portfolio of up to 800 MW.
Technip Energies secured the engineering, procurement and construction contracts for the LNG plant and the Chicago Bridge & Iron Co secured the deal for the 165,000-m3 LNG tank.
The partners also aim to make the Marsa LNG project the Middle East’s first LNG bunkering hub.
“We are proud to open a new chapter in our history in the Sultanate of Oman with the launch of the Marsa LNG project, together with our partner OQ, demonstrating our long-term commitment to the country,” Mr Pouyanné remarked.
“We are especially pleased to deploy the two pillars of our transition strategy, LNG and renewables, and thus support the Sultanate on a new scale in the sustainable development of its energy resources.”
In Malaysia, TotalEnergies is aiming to acquire upstream gas operator SapuraOMV from Sapura Upstream Assets Sendirian Berhad. Back in January, TotalEnergies acquired a 50% interest in SapuraOMV from Austrian firm OMV.
The US$530M deal with Sapura will see TotalEnergies acquire the remaining stake and is expected to close in the second half of the year.
SapuraOMV owns a 40% operated interest in Block SK408 and 30% operated interest in Block SK310, offshore Sarawak in Malaysia, and interests in exploration licences elsewhere in Malaysia, Australia, New Zealand and Mexico, where a discovery was made in 2023 on Block 30.
Last year, the fields produced 500 Mcf/d of natural gas, feeding Petronas’ Bintulu LNG plant, as well as 7 kb/d of condensates. On Block SK408, the development of Jerun gas field is on track for a startup in the second half of the year.
Mr Pouyanné stressed the SapuraOMV assets are in line with the company’s strategy to grow its gas production to meet demand growth and grow its presence in Malaysia.
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