Vital Strategy Total Energies to Further Develop Gas Business with Oman
Total Energies has recently announced its plans to commence gas production from Block 10 in Oman and has also entered into a long-term LNG purchase contract with Oman LNG. The move is in line with the firm’s growth strategy in the gas sector.
Paris/France – In line with its growth strategy in gas and LNG, a fuel contributing to the energy transition, Total Energies announces the start of gas production from onshore Block 10 in the Sultanate of Oman as well as an agreement with Oman LNG for a long-term LNG purchase contract.
Total Energies announces the start of gas production from the Mabrouk North-East field in the onshore Block 10. Total Energies holds a 26.55 % interest in Block 10, with OQ holding 20 % and Shell, operator, holding 53.45 %.
Gas production is expected to reach 500 million standard cubic feet per day by mid-2024. The produced gas will supply the Omani gas network, feeding both local industry and LNG export facilities. This production start-up follows the signing of the concession agreement in December 2021.
Total Energies has also signed an agreement with Oman LNG for the purchase of 0.8 million metric tons of LNG per year over a period of ten years starting from 2025.
This new contract will contribute to Total Energies' LNG integrated portfolio and reinforce its flexibility, by allowing to address both the European and Asian markets. This LNG will contribute to the reduction of emissions into the atmosphere since it will allow the electric utilities who purchase this gas to substitute it for coal, thus avoiding CO2 emissions (a natural gas power plant releases about half as much CO2 as a coal power plant).
“These announcements are consistent with the ambition of Total Energies to contribute to the energy transition and reinforce its long-standing partnerships with both Oman LNG and the Omani State”, said Patrick Pouyanné, Chairman and CEO of Total Energies. “Total Energies deploys in Oman its multi-energy strategy in oil, gas and renewables and so participates in the sustainable development of the country’s natural resources.”
Total Energies has recently signed 30 MW of Solar projects in Oman including a project to supply Sharqiyah Desalination Company (17 MW), in joint-venture with Veolia.