Image courtesy of SOHAR Port and Freezone, Image used for illustrative purpose only.
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TotalEnergies selects contractor for major LNG project

French energy giant TotalEnergies has selected an EPC contractor to spearhead engineering, procurement, and construction (EPC) efforts for its ambitious liquefied natural gas (LNG) terminal project in Oman’s northern city of Sohar, according to reports.

The project, led by TotalEnergies in partnership with Oman’s state energy holding company OQ under the joint venture Marsa LNG, aims to develop an integrated facility encompassing upstream units drawing natural gas feedstock from TotalEnergies’ hydrocarbon concessions in the sultanate, a bunkering terminal at Sohar port, and a solar photovoltaic (PV) plant to power the LNG terminal.

France-based Technip Energies received a letter of intent from TotalEnergies in January, the official contract award and final investment decision are pending, according to sources familiar with the matter.

With a capacity to process 1 million tonnes annually, the LNG bunkering terminal primarily targets vessels, underlining TotalEnergies’ commitment to sustainable energy solutions

TotalEnergies spearheads Marsa LNG, a joint venture formed in December 2021 with the Sultanate’s state energy holding company OQ, where TotalEnergies holds an 80% stake while OQ holds 20%. Marsa LNG aims to construct an integrated facility, drawing natural gas from TotalEnergies’ concessions in Blocks 10 and 11, establishing an LNG bunkering terminal and storage units at Sohar port, and implementing a solar PV plant to power the LNG terminal.

The Marsa LNG terminal, equipped with a single train capable of processing 1 million tonnes annually, will predominantly supply LNG as marine fuel to vessels. Marsa LNG aims to position Oman as a regional LNG bunkering hub capable of supplying marine vessels with LNG fuel, boasting an annual production capacity of 1 million tons.  The terminal will facilitate the transition from traditional marine fuel oils to LNG in compliance with the International Maritime Organization’s (IMO) new sulfur emission limits since January 2020. Gas sourced from Block 10, operated by Shell Development Oman (53.4%), in collaboration with MARSA LNG (33.2% equity) and OQ (13.4% equity), will be processed, liquefied, and stored onshore, utilizing the OQGN network for supply.

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