Oman is completing a proposal for a third train to boost the country’s production of liquefied natural gas (LNG) at the cost of 377 million rials ($980 million), according to the Omani economics ministry on January 23rd.
Oman LNG has proposed a 3.3 million tones per year expansion designed to increase LNG output by 50 percent to 9.9 million tones per year.
A ministry official said that: “We are very encouraged by the responses of potential buyers.
We know now the investment of the third train will be justified following the success of the first two trains.” Oman LNG currently produces about 6.6 million tones per year from two trains, but company officials had said in October that Oman LNG was in discussions with Shell International and other firms about a possible sales agreement for 2 million tones per year.
Oman LNG started exports in April with a cargo to South Korea, and the company also has long-term supply contracts with Indian and Japanese firms.
The company is 51 percent owned by the government, with Royal Dutch/Shell, TotalFinaElf, Korean LNG Co., Partex, Mitsui, Mitsubishi Corp. and Itochu Corp. also holding shares.
Oman currently produces around 850,000 b/d of crude, which constitutes 65 percent of the country’s revenues, but would like to diversify its economy.
© 2001 Mena Report (www.menareport.com )