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French energy giant TotalEnergies has taken a final investment decision on the Marsa LNG bunkering project in Oman. Technip Energies has been awarded the engineering, procurement, and construction (EPC) contract for the project with an LNG production capacity of 1 mtpa.
The Marsa LNG project is an integrated complex developed by TotalEnergies with a 80 percent share while Oman’s OQ has 20 percent.
The liquefaction plant will be built in the port of Sohar and LNG production is expected to start by the first quarter in 2028, according to TotalEnergies.
Also, a dedicated 300 MWp PV solar plant will be built to cover 100 percent of the annual power consumption of the LNG plant.
TotalEnergies said the production of the facility is primarily intended to serve the marine fuel market (LNG bunkering) in the Gulf.
However, LNG quantities not sold as bunker fuel will be off-taken by TotalEnergies and OQ.
As per the upstream production, 150 Mcf/d of natural gas, coming from the 33.19 percent interest held by Marsa in the Mabrouk North-East field on onshore Block 10, will provide the required feedstock for the LNG plant.
Block 10 production started in January 2023 and reached plateau in April 2024, and the FID allows Marsa LNG to extend its rights in Block 10 until its term in 2050, TotalEnergies said.
Image: TotalEnergies
TotalEnergies said this will be the first LNG bunkering hub in the Middle East.
It will be 100 percent electrically driven and supplied with solar power, “positioning the site as one of the lowest GHG emissions intensity LNG plants ever built worldwide, with a GHG intensity below 3 kg CO2e/boe,” it said.
Moreover, Technip Energies said in a separate statement that it won a “substantial” contract from TotalEnergies and OQ for the Marsa LNG project, meaning the contract award represents between 500 million euros and 1 billion euros ($532 million – $1.06 billion) of revenue.
Besides the EPC contract awarded to Technip Energies, TotalEnergies and OQ awarded a contract to McDermott’s CB&I for the 165,000 cbm LNG tank.
TotalEnergies already participates in the Oman LNG complex in Qalhat that includes three trains with a capacity of about 11.4 mtpa.
It has a 5.54 stake in Qalhat LNG and 2.04 percent in Oman LNG.
Last year, Oman LNG signed a term sheet with TotalEnergies to supply 0.8 mtpa per year for a period of 10 years to TotalEnergies.
The two firms now converted this term sheet to an SPA.
TotalEnergies said on Monday that it had signed a sale and purchase agreement (SPA) with Oman LNG to offtake 0.8 mtpa of LNG for ten years from 2025, making the company one of the main offtakers of Oman LNG’s production.
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The post TotalEnergies takes FID on Marsa LNG bunkering project in Oman appeared first on Energy News Beat.
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