Oman is to launch exports of liquefied natural gas (LNG) to Japan in November, shipping 600,000 tonnes per annum under a 25-year contract, the chief executive of Oman LNG said Tuesday.
Graham Searle, quoted in the Oman Observer newspaper, said the sultanate's LNG exports which started in April would reach a level of 37 cargoes this year, 81 in 2001 and a full capacity of 90 cargoes the following year.
Osaka Gas Company of Japan is one of three long-term clients. Exports to India's Dabhol Power Company under another long-term contract will begin next year, he said, adding that exports of spot cargoes have already started to customers in the United States and Spain.
Oman LNG is expected to break even this year and pay dividends from 2001, the chief executive said.A first export cargo of 135,000 cubic metres (4.725 million cubic feet), bound for the Korea Gas Corporation (Kogas), was loaded at the Gulf terminal of Qalhat, south of the Omani capital, on April 6.
Oman LNG signed a sales and purchase agreement (SPA) with Kogas in October 1996 to supply 4.1 million tonnes per annum for 25 years.
Qalhat's production capacity is put at 6.6 million tonnes a year and the project cost around 2.6 billion dollars. The government owns 51 percent of Oman LNG, the Anglo-Dutch giant Royal Dutch Shell holds 30 percent, TotalFinaElf 5.54 percent, Korea LNG five percent, Partex of Portugal two percent, and Japan's Mitsui, Mitsubishi and Itochu the rest.—AFP.
©--Agence France Presse.
© 2000 Mena Report (www.menareport.com)