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Oman LNG company signs 9-year supply deal with BP

November 22, 2023 at 2:43 pm

Camp with retired oil pumps with Marmul, Oman [Bildagentur online/Universal Images Group via Getty Images]

Oman’s liquefied natural gas company, Oman LGN, has signed a sale and purchase agreement with British energy giant BP, which will see a total of 1 million Metric Tonnes Per Annum of LNG sold by the sultanate to BP over a nine-year period.

According to the Oman News Agency the agreement is Free-on-Board (FOB) and will commence in 2026.

“The Sale and Purchase Agreement with BP unlocks new opportunities to leverage Oman’s presence in the global energy trade,” explained Hamed Al-Naamany, CEO of Oman LNG. “The expected revenues will not only support the national economy, but also support the energy transition, pragmatically.”

In August, Oman LNG signed a long-term agreement with Germany’s Securing Energy for Europe to supply 0.4 million tonnes of LNG, also starting from 2026.

At the time, the news agency reported that the four-year deal was the sultanate’s first with a German firm and was “considered a remarkable milestone for both countries, thus opening doors for new opportunities in the European markets.”

Earlier this year, the supplier also signed a ten year 800,000 tonnes per annum deal with TotalEnergies starting in 2025, and a nine-year supply agreement with the Petroleum Authority of Thailand starting in 2026.

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