Oman signs new deal regarding Qalhat LNG
Oman has signed a shareholders agreement making Oman LNG and Union Fenosa Gas its partners in Qalhat LNG (SAOC). According to ONA, the agreement is one of a number of other agreements concerning Qalhat LNG signed at Al Bustan Palace Hotel.
The others include two agreements on gas supply and shipping between Oman LNG and the Oman Shipping Company and an agreement on shared use of facilities between Oman LNG and Qalhat LNG.
Qalhat LNG (SAOC) was incorporated in September 2003, following the Sultanate’s decision early last year to build a third LNG train. The closed joint stock company is owned by the Sultanate’s Government (55.84%), Oman LNG LLC (36.8%) and Union Fenosa Gas (7.36%).
The new company will own the third LNG train in the Sultanate and which is being built by Chiyoda-Foster Wheeler. Overall capital expenditure will be approximately $700 million.
The train is being built adjacent to the Oman LNG 2-train facility at Qalhat, near Sur, allowing it to share Oman LNG storage, loading and other facilities. It will, furthermore, allow Oman LNG to operate the new train and its own two trains as one integrated plant, thus maximising operating efficiency.
Ahmed bin Abdul Nabi Macki, Oman's Minister of National Economy and Deputy Chairman of the Financial Affairs and Energy Resources Council, said production from the third train will be shipped to Spain and Japan in 2006. Four Omani LNG tankers named Ibra, Ibri, Nizwa and Salalah respectively and which are now being built in Korea and Japan will transport the LNG consignments to these two countries in addition to the Omani LNG vessels; Muscat and Sohar which carry the LNG shipments at present.
According to Macki, the new tanker’s LNG output will be 3.3 million tonnes per annum when production commences in early 2006 and is expected to rise to 3.7 million tonnes per annum. (menareport.com)
© 2004 Mena Report (www.menareport.com)