Shell solidifies partnership with Oman LNG

Oman LNG signed various agreements with Shell Gas to secure its gas supply until 2034. (Image source: Adobe Stock)

Industry

Shell Gas, a subsidiary of Shell plc, and partners in the Oman LNG LLC venture has signed an amended shareholders’ agreement for Oman LNG, extending the business beyond 2024 

Oman LNG in turn signed various agreements to secure its gas supply until 2034. The signing ceremony was held under the patronage of Salim Al Aufi, Oman’s Minister of Energy and Minerals.

Under these agreements, Shell Gas will remain the largest private shareholder in Oman LNG, with a 30% shareholding, and continues its role as technical adviser.

"Shell is proud of its role as the largest private shareholder, off-taker and technical adviser in Oman LNG," said Zoë Yujnovich, Shell’s integrated gas and upstream director. "We believe liquefied natural gas’s (LNG) role in the energy system will continue to grow, and this milestone further demonstrates our commitment to our integrated gas business and to Oman as a key heartland to Shell."

In addition and based on previously signed term sheets, Shell International Trading Middle East FZE will purchase up to 1.6 mn tonnes per annum of LNG from Oman LNG from 2025 to 2034, making Shell the largest LNG off-taker from Oman LNG.

Established by Royal decree in 1994 following the discovery in the early 1990s of significant volumes of gas in the Sultanate, Oman LNG is one of the largest investment projects in Oman. It operates a three-train plant with production capacity of 11.4 mn tonnes of LNG per year.

Shell in Oman holds interests in Petroleum Development Oman (34%), Oman LNG (30%) and Shell Oman Marketing Company (49%). Shell was a pioneer in the development of solar energy in Oman through our Solar into Schools programme and our Solar Sohar Qabas renewable power project in Sohar. In January, Shell started producing gas from Mabrouk Field in Block 10, in which Shell holds 53.45% interest. From 2025, Shell is expected to become the largest buyer of LNG from Oman under contracts signed with Oman LNG.