Oman LNG to supply Türkiye with 1 million metric tonnes per annum from 2025

Oman LNG has signed binding term-sheet agreement with Turkish BOTAŞ Petroleum Pipeline Corporation (BOTAS) to supply 1Mtpa of LNG, starting in 2025, under a 10-year contract.

This agreement helps to strengthen Oman LNG’s partnership with international firms in the energy and LNG industry, and its reputation as a "reliable and trusted LNG supplier", Gasworld reports.

The agreement was signed in the presence of Eng. Salim Nassir Al Aufi, Minister of Energy and Minerals, by Hamed Mohammed Al Nu’amani, CEO of Oman LNG, and Burhan Ozcan, Chairman of the Board and General Manager of BOTAS Petroleum Pipeline Corporation (BOTAS).

It’s the latest sign of Oman stepping up its international LNG exports, after it recently signed deals with three Japanese firms (Itochu Corporation, JERA and Mitsui & Co), also starting in two years.

TotalEnergies has also signed an agreement with Oman LNG for the purchase of 0.8m MT tonnes of LNG per year over a period of 10 years starting from 2025. The LNG will contribute to the reduction of emissions into the atmosphere since it will allow the electric utilities who purchase this gas to substitute it for coal, thus avoiding CO2 emissions.

Gas production (including imports) in Oman registered a growth of 3.7 per cent till the end of December 2022 to stand at 52,061.9 million cubic metres compared to 50,190.6 million cubic metres during the corresponding period in 2021.

The production of associated gas went up by 9.3 per cent to reach 10,064 million cubic metres. Moreover, the production of non-associated gas and imports recorded a rise by 2.5 per cent to stand at 41,997.9 million cubic metres. Consumption of natural gas increased by 12.6 per cent in industrial areas and 7.4 per cent in industrial projects. Meanwhile, natural gas consumption declined by 1.6 per cent in oil fields and 1.4 per cent in electricity power plants.

Türkiye has prioritised security of energy supply as one of the central pillars of its energy strategy, including efforts to boost domestic oil and gas exploration and production, diversify oil and gas supply sources and associated infrastructure, and reduce energy consumption through increased energy efficiency. Investments in LNG and underground natural gas storage are considered priorities to advance energy security.

Several new floating storage and regasification terminals have been commissioned in recent years, existing LNG entry capacity has increased and new entry points are being connected to the gas network to ensure supply diversification, reports the IEA.

“Already, the country has ramped up the procurement of spot LNG to boost optionality of import sources. In addition, Türkiye has undertaken sizeable recent and planned upgrades to storage capacity, which will also significantly lift the country’s gas security,” it notes.