TotalEnergies and Oman LNG Renews Offtake Partnership
TotalEnergies SE has extended its partnership with Oman LNG, an Omani liquefied natural gas (LNG) joint venture in which the company holds a 5.54 percent stake. The amended agreement includes a ten-year extension of TotalEnergies’ interest in Oman LNG and a five-year extension in Qalhat LNG, both beyond 2024.
In January, TotalEnergies signed an agreement with Oman LNG to offtake 0.8 million tons per annum (mtpa) of LNG for ten years starting in 2025, making it one of the main off-takers of Oman LNG’s production. Additionally, the parties have agreed to invest in measures to reduce the plant’s greenhouse gas emissions during this extension.
The Oman LNG liquefaction complex is situated on the northeast coast of Oman and consists of two liquefaction trains, each with a capacity of 3.8 mtpa of LNG. It is located adjacent to the Qalhat LNG project, which includes one 3.8-mtpa train and is partly owned by Oman LNG. The combined production capacity of the site is 11.4 mtpa.
“We are pleased to extend our partnership with Oman LNG”, TotalEnergies Senior Vice President Middle East & North Africa, Exploration & Production Julien Pouget said. “This LNG contributes to our supply of Europe and Asian markets, and strengthens our integrated and flexible global portfolio, in line with TotalEnergies’ ambition to increase its LNG production and long-term purchases by 50 percent by 2030”.
In October, Shell Gas BV, a subsidiary of Shell plc, also extended its partnership with Oman LNG through an amended agreement.
Oman LNG has secured several agreements to ensure its gas supply until 2034. Under these agreements, Shell Gas will continue to be the largest private shareholder in Oman LNG, with a 30 percent interest, and will maintain its role as a technical adviser to the state-owned project.
Shell International Trading Middle East FZE signed an agreement to purchase up to 1.6 million metric tons per annum of liquefied natural gas (LNG) from Oman LNG from 2025 to 2034, becoming the largest LNG off-taker from Oman LNG.
Oman LNG is predominantly owned by the Government of the Sultanate of Oman with a 51 percent interest. Other shareholders include Korea LNG (5 percent), PTTEP (2 percent), Mitsubishi (2.77 percent), Mitsui (2.77 percent), and Itochu (0.9 percent).
As for Qalhat LNG, it is primarily owned by the Government of Oman with a 46.84 percent interest, and Oman LNG holds a 36.8 percent stake.
LNG FSPRU Commissioning
Meanwhile, TotalEnergies has commissioned Cape Ann, its floating storage and regasification unit (FSRU) for LNG, located in the port of Le Havre. The terminal injected its first megawatt-hours (MWh) of gas into the grid operated by GRTgaz, using LNG from Norway, TotalEnergies said in a separate news release.
TotalEnergies has contracted 50 percent of the terminal’s annual capacity of around 5 billion cubic meters to supply it with LNG from its global portfolio. The remaining capacity will be marketed according to rules approved by the relevant regulator, the company said.
Renewable Acquisition in Germany
In other developments, TotalEnergies signed agreements with the Aloys Wobben Foundation (AWS) to acquire the entire share capital of the German company Quadra Energy.
Specializing in the aggregation of renewable electricity, Quadra Energy purchased production from around 5,000 wind and solar power plants in 2022, and then resold 14 terawatt-hours (TWh) on wholesale markets and to German resellers and customers, according to an earlier news release.
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Quadra Energy has also developed a portfolio of medium-term contracts for the purchase of two TWh of renewable power and their sale through corporate power purchase agreements (PPAs).
The acquisition, subject to approval by the relevant authorities, will enable TotalEnergies to further strengthen its integrated power business in Germany. The assets will enable the company “to strengthen its trading capacity on the intraday markets and to broaden its marketing activities to offer its German customers competitive corporate PPAs and clean firm power”, it said.
