MUSCAT: Oman LNG announced on Tuesday the signing of binding sheet agreements with three Japanese firms for the delivery of LNG, starting in 2025. ITOCHU Corporation, JERA Co Inc and Mitsui & Co, Ltd have become the latest beneficiaries of Omani LNG covering a total of 2.35 million metric tonnes per annum (mtpa) of LNG.
The agreements build on the existing robust partnership between Oman and Japan, where Japan has been a critical market for Oman’s LNG for the last 22 years. The new agreements will see Oman LNG supplying Japan with a total volume of 2.35 mtpa based on contracts varying from 5 to 10 years. Supply commitments are as follows: ITOCHU Corporation, 0.8 MTPA, JERA Co Inc 0.8 MTPA, and Mitsui & Co, 0.75 MTPA.
The pacts represent a significant milestone in the history of Oman LNG, complementing efforts to renew LNG supply contracts for beyond 2024 with a strong interest to leverage its partnership with Japan. This ensures Oman LNG sustains its position in the global LNG market and contributes to global energy security, where it currently continues to play a significant role in delivering clean and reliable energy.
Eng Salim bin Nasser al Aufi, Minister of Energy and Minerals, commented on the signing ceremony, "These LNG agreements are a testimony to Oman’s commitment to supply the world with energy. Our partnership with Japan goes far and beyond since inception of Oman LNG. This milestone will not only unlock growth opportunities, but will also sustain and expand our LNG business beyond 2024. Oman will continue to be a reliable supplier of LNG, and a global preferred destination for sourcing clean energy.”
The agreements were signed by Hamed al Naamany, CEO of Oman LNG, with Tetsuya Yamada from ITOCHU Corporation, Hitoshi Nishizawa from JERA Co Inc, and Motoyasu Nozaki from Mitsui & Co at the Royal Opera House Muscat. Also present were Eng Salim al Aufi, Minister of Energy and Minerals of Oman, Yasutoshi Nishimura, Minister of Economy, Trade and Industry of Japan, as well as high officials, senior delegates representing the Japanese firms and from the Oil and Gas sector from both Oman and Japan.
Abdulsalam al Murshidi, President of Oman Investment Authority (OIA), commented: “The strategic relations and close ties between the Sultanate of Oman and Japan have delivered years of successful collaborations in diverse industries, especially in the LNG sector. We are delighted today to stand and witness a new phase of this relationship in the signing of this agreement which reflects the economic diplomacy adopted by the Sultanate to promote its international standing in the energy sector, and contributes to the objectives of national economic growth in line with the priorities of Vision Oman 2040.”
The agreements are strengthened by the reputation of Oman LNG as a reliable and trusted LNG supplier around the globe, coupled with the effective management of business processes to produce clean energy delivered to customers around the world safely and reliably. Furthermore, the LNG plant at Qalhat, in Sur, has the capacity to receive and process additional volumes, as it has initiated the Power Project and Debottlenecking Project with its enhanced capacity to 11.6 mtpa.
"The term-sheet agreements, signed today, are the first for Oman LNG for its next phase beyond 2024. Signing with Japan reflects our strong relations with the Japanese government, and Oman LNG’s position as a reliable supplier of LNG worldwide. These agreements are a game changer for Oman and Oman LNG, leveraging the opportunities to continue working with trusted partners, while expanding our market access on the growing opportunities of global energy trade,” said Talal al Awfi, Oman LNG Chairman.
Hamed al Namaany, CEO of Oman LNG, added: "These agreements complement our efforts to further grow and strengthen our market positions including new business opportunities. This will leverage well the enhanced production and our nationwide commitment towards diversifying the economy, while ensuring economic growth. We are proud to continue growing our global brand built on home-grown capabilities and capacities that are pivotal on the backdrop of energy supply and efficiency."
Source: Oman LNG
Date: 27th December 2022