Oman LNG has signed a long-term agreement with Germany’s Securing Energy for Europe (SEFE) to supply 0.4 million tonnes of liquefied natural gas (LNG) starting 2026, according to the Oman News Agency (ONA).
The four-year LNG deal is the sultanate’s first with a Germany firm and is “considered a remarkable milestone for both countries, thus opening doors for new opportunities in the European markets,” the agency reported.
Yesterday, a signing ceremony was held under the auspices of Minister of Energy and Minerals, Salim Nasser Al-Aufi, and the agreement was signed by Hamed Al-Naamany, CEO of Oman LNG, and Frederic Barnaud, chief commercial officer of SEFE.
Oman LNG has announced the signing of a binding term sheet agreement with SEFE Securing Energy for Europe (SEFE) @SEFEGmbH to offtake a total of 0.4 million metric tonnes per annum starting from 2026. This testifies our role as a leading supplier of reliable energy worldwide. pic.twitter.com/g48CV81ZqW
— Oman LNG (@OmanLNG) August 14, 2023
Mahmoud Abdulsatar Al-Balushi, chief commercial officer of Oman LNG, was quoted as saying: “The term-sheet signing with SEFE marks another milestone. Going further, the agreement leverages our constant efforts to add value to Oman’s economy through growth and collaborations.”
In a statement CEO of SEFE, Egbert Laege, said: “We are delighted to announce the historic contract signing between SEFE and Oman LNG, marking a significant milestone for both entities. As pioneers among German companies to embark on this partnership, SEFE is proud to lead the way towards enhanced collaboration.”
The deal with SEFE is the ninth contract Oman LNG has signed since December 2022 and follows an agreement inked with China’s Unipec, a subsidiary of state-owned energy giant Sinopec.
Germany, Europe’s largest economy and a key importer of Russian gas in the past, is trying to obtain alternative supplies following a drop in flows from Russia as a result of its invasion of Ukraine.