TotalEnergies and OQ have announced Final Investment Decision (FID) of the integrated Marsa LNG project through their joint company Marsa Liquefied Natural Gas
The two companies have signed a Sale and Purchase Agreement (SPA) with Oman LNG to offtake 0.8 Mtpa of LNG for ten years from 2025, making the joint venture one of the main offtakers of Oman LNG's production.
The integrated Marsa LNG project is intended to be the first LNG bunkering hub in the Middle East, with the aim of reducing the shipping industry’s emissions. It combines:
• Upstream gas production: 150 Mcf/d of natural gas, coming from the 33.19% interest held by Marsa in the Mabrouk North-East field on onshore Block 10, which will provide the required feedstock for the LNG plant. Block 10 production started in January 2023 and reached plateau in April 2024. The FID allows Marsa LNG to extend its rights in Block 10 until its term in 2050.
• Downstream gas liquefaction: a 1 Mtpa capacity LNG liquefaction plant will be built in the port of Sohar. The LNG production is expected to start by first quarter 2028 and is primarily intended to serve the marine fuel market (LNG bunkering) in the Gulf. LNG quantities not sold as bunker fuel will be off-taken by TotalEnergies (80%) and OQ (20%).
• Renewable power generation: a dedicated 300 MWp PV solar plant will be built to cover 100% of the annual power consumption of the LNG plant, allowing a significant reduction in greenhouse gas emissions.
The Marsa LNG plant will be 100% electrically driven and supplied with solar power, making it one of the lowest GHG emissions intensity LNG plants ever built worldwide, with a GHG intensity below 3 kg CO2e/boe.
The main EPC contracts have been awarded to Technip Energies for the LNG plant and to CB&I for the 165,000 m3 LNG tank.
TotalEnergies and OQ Alternative Energy are jointly developing a portfolio of up to 800 MW, including the 300 MWp solar project that will supply Marsa LNG.
“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. 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”, said Patrick Pouyanné, chairman and CEO of TotalEnergies.
