Oman may start importing LNG to meet surging domestic energy demand, according to industry sources, who added that a shift in trade that would make it the fourth country in the oil-rich Gulf region to make the purchase
Oman currently exports LNG under long-term contracts to Spain and several Asian countries including Japan and South Korea. The Gulf nation is now studying options to import LNG as well to help generate power and for other uses.
Potential imports would arrive at the Sohar Port, located at north of the capital city Muscat, Bloomberg reported.
LNG trade is expanding in the Middle East due to the growing regional use of electricity and the lack of cross-border pipelines for transporting natural gas. Combined imports of LNG by Kuwait and the UAE increased 47 per cent in 2014 from the previous year, according to the International Group of Liquefied Natural Gas Importers.
Oman’s possible shift to importing the fuel follows years of rising local gas consumption and shrinking exports of LNG. Spare production capacity at Oman LNG LLC, which operates the country’s facilities for liquefying gas for export, last year reached its highest level since 2006, according to the company’s annual reports.
Oman produced 7.95mn tonnes of the fuel in 2014 from plants with an annual capacity of 10.4mn metric tonnes, Oman LNG said in its latest annual report. Natural gas consumption in Oman jumped to 21.9bn cu/m in 2013 from 14.7bn cu/m in 2009, according to the US Energy Information Administration.
LNG imports would supplement Oman’s current supply of natural gas by pipeline from Qatar. Oman also hopes to receive gas from Iran through a separate pipeline that has yet to be built.
