MUSCAT: Oman LNG has announced on Tuesday the signing of a binding term-sheet agreement with China International and Chemical Co, (UNIPEC) to supply 1 million metric tonnes per annum (mtpa) of LNG starting in 2025.
This agreement leverages the ever-growing partnership between Oman LNG and international energy firms, where UNIPEC has become the latest beneficiary of Omani LNG marking the first LNG term deal with a Chinese firm, a remarkable milestone for both companies and countries opening doors for new opportunities in the Chinese market.
The signed term-sheet agreement encapsulates supplying a total volume of 1 million metric tonne per annum of LNG from Oman LNG to UNIPEC, the Trading Arm of the Chinese company SINOPEC. The agreement is based on a 4-year contract, starting in 2025. Signing term-sheet agreements beyond 2024 emphasises Oman LNG’s role in sustaining the Sultanate of Oman’s reputation as a reliable and trusted LNG supplier, coupled with the effective management of business processes to produce clean energy, and deliver it to customers around the world safely and reliably.
The agreement was signed by Hamed al Naamany, CEO of Oman LNG, and Wang Yahang, General Manager of UNIPEC, in the presence of Eng Salim bin Nasser al Aufi, Minister of Energy and Minerals, in Muscat.
Hamed al Naamany, CEO of Oman LNG, said: “The term-sheet signing with UNIPEC marks another milestone, where the Omani LNG will be creating new opportunities in China. Such agreement will further enhance our position in the global energy industry, and ensure we maintain our reputation as a clean and reliable energy supplier worldwide. This step boosts our on-going efforts to add value to the local economy through growth and collaborations with international partners such as UNIPEC.”
Oman’s liquefied natural gas industry was born out of the vision of the late Sultan Qaboos bin Said to diversify the country’s economy and has attracted high revenue by harnessing natural gas resources for export as liquefied natural gas. The country produced its first shipment of liquefied natural gas in 2000 after the first of an initial two-train plant began operations under Oman LNG, established by Royal Decree in 1994. With a third train under Qalhat LNG, liquefied natural gas has played an even greater role in contributing to the national economy as the two companies, that integrated in 2013 and now operate as Oman LNG, have worked intensely with outstanding success to drive their organisations forward.