Itochu, Mitsubishi and Osaka Gas each acquire three per cent share in Oman’s Qalhat LNG
The Government of the Sultanate of Oman signed agreements yesterday to transfer a nine per cent share of Qalhat LNG S.A.O.C to three Japanese companies.
As per the terms of the Share Transfer Agreements, Itochu Corporation, Mitsubishi Corporation and Osaka Gas of Japan each acquire three per cent of the equity shareholding of Qalhat LNG SAOC.
The agreements were signed between H.E. Ahmed bin AbdulNabi Macki, Mminister of National Economy and Deputy Chairman of the Financial Affairs and Energy Resources Council; H.E. Mohammed bin Hamed Al Rumhi, Minister of Oil and Gas; and representatives of the three Japanese companies.
Consequent to these agreements, 46.84 per cent of Qalhat LNG SAOC will now be owned by the Government of Oman, 36.8 per cent will be held by Oman LNG Union, 7.36 per cent by Fenosa Gas, three per cent each by Itochu Corporation, Mitsubishi Corporation and Osaka Gas respectively.
Both Mitsubishi Corporation and Osaka Gas already have long-term LNG supply agreements with Qalhat LNG under which the company supplies 0.8 million tonnes of LNG per year to each of these two companies. While Mitsubishi Corporation will transport its volume to both the United States and Japan, Osaka Gas will transport its share only to Japan. Itochu Corporation has already entered into a sales and purchase agreement with Oman LNG for lifting a similar volume of LNG on a long-term basis.
Qalhat LNG SAOC was incorporated in 2003 by the Government of Oman in keeping with a decision to initiate a new LNG company that would own a third train in Qalhat, Sur. Nearly US$ 700 million has been invested into the engineering, procurement and construction of Qalhat LNG 3.3 mtpa liquefaction train.
The Qalhat LNG train is located adjacent to two identical trains of Oman LNG at Qalhat in Sur. The two companies share certain common facilities and therefore, the new train along with the existing facilities, is being operated as an integrated plant to optimise the operation and efficiency of the complex.
Qalhat LNG has signed three long-term sale and purchase agreements (SPAs) for a total contracted volume of approximately 3.3 MMtpa. These include a 20-year long SPA to supply LNG to Spain's Union Fenosa Gas (1.65 MMtpa), a 17-year long SPA with Osaka Gas (0.80 MMtpa) and a 15-year long deal with Mitsubishi Japan (0.8 MMtpa).
Qalhat LNG’s success proves the standing the Government of Oman enjoys in the international arena. The new agreement will help to strengthen and enhance economic ties between Oman and Japan and will attract further foreign investments into the country.