Oman ships LNG for Enron on behalf of Australian firm

Published October 31st, 2000 - 02:00 GMT

Oman on Monday delivered a shipment of liquefied natural gas (LNG) for the Australian company North-West Shelf to be supplied to the US firm Enron Corp., an Oman LNG spokesman said. 

 

The spokesman said North-West Shelf had asked Oman LNG to buy 85,000 cubic metres (three million cubic feet) of gas to be supplied to Enron. 

 

The purchase order followed technical problems in its Australian factories that prevented North-West Shelf from honouring its commitments to the US corporation. 

 

In August, Enron itself took delivery of a cargo of 135,000 cubic metres (4.725 million cubic feet) from Oman LNG. Exports of spot cargoes have also started to customers in Spain. 

 

The sultanate's LNG exports from Qalhat in the southern province of Sur on the Arabian Sea started in April with a first export cargo of 135,000 cubic metres (4.725 million cubic feet) bound for the Korea Gas Corp. 

 

Oman LNG signed a sales and purchase agreement (SPA) with the South Korean firm in October 1996 to supply 4.1 million tonnes per annum for 25 years. 

 

In other long-term contracts, it has secured a firm order for 1.6 million tonnes of LNG per year for 20 years starting from end-2001 from India's Dabhol Power Company, built by Enron. It is also set to launch exports to Japan in November, shipping 600,000 tonnes per annum under a 25-year contract. 

 

Oil Minister Mohammad bin Hamad al-Romhi has put Oman's proven gas reserves at 660 million cubic metres (22 trillion cubic feet), with potential reserves more than double that figure. Qalhat's production capacity is put at 6.6 million tonnes a year. 

 

The government owns 51 percent of Oman LNG, the Anglo-Dutch giant Royal Dutch Shell holds 30 percent, the Franco-Belgian TotalFinaElf 5.54 percent, Korea LNG five percent, Partex of Portugal two percent, and Japan's Mitsui, Mitsubishi and Itochu the rest.—AFP. 

©--Agenece France Presse. 

 

 

© 2000 Mena Report (www.menareport.com)

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