Oman LNG plans third LNG train, sells total Train 2 volumes

By an OGJ Online correspondent

NICOSIA, Dec. 16 -- State-owned Oman LNG Co.'s (OLNG) third LNG train, which will have a production capacity of 3.3 million tonnes/year, is expected to begin production by first quarter 2006, increasing the Omani firm's output to about 10 million tonnes/year from the present 6.6 million tonnes/year.

A joint venture of Yokohama-based Chiyoda Corp. and Foster Wheeler Ltd. is developing the third train under terms of a contract awarded by Royal Dutch/Shell Group. The train will be located next to OLNG's existing Qalhat facilities.

Spanish electric power provider Union Fenosa SA, which has been aggressively developing markets and lining up gas supplies, signed a 20-year agreement with OLNG in May for the supply of LNG from the third train, marking its third supply contract with OLNG.

Sold out
Meanwhile, Omani LNG production nearly tripled in 2002 as its second train ramped up production, and, with the recent signing of its second contract with Union Fenosa for LNG supply, Oman LNG completely sold out its current capacity to long-term purchasers and spot buyers.

Under terms of the new agreement, OLNG will provide Fenosa with 1 billion cu m of LNG in 2004 and an additional 800 million cu m in 2005. OLNG's Lakshmi carrier will transport the shipments.

Other purchasers include OLNG's main customer, Korea Gas Corp. (Kogas), which contracted in April 2000 for 4.1 million tonnes/year LNG over a 25-year period.

Japan's Osaka Gas Co. also buys from OLNG under terms of a 25-year, 700,000 tonnes/year contract signed in November 2000.

In addition, the Omani company agreed in early November to deliver 600,000 tonnes of LNG to TotalFinaElf Gas & Power Ltd. for delivery to the European and American markets next year, and in mid-November, Belgium-based Tractebel SA secured medium-term supplies of 600,000 tonnes of LNG from OLNG for sale into North America, Europe, and Asia.

Tractebel, a division of France's Suez Group, said it would use the newly chartered Hoegh Galleon and Excalibur LNG carriers to transport its gas.

Gaz de France signed a contract with OLNG to purchase nine spot cargos of 138,000 cu m of LNG each for delivery to the Montoir-de-Bretagne terminal during March-December of this year, while Tokyo Electric has also signed up for two spot cargos.

OLNG is a consortium of the Government of Oman 51%, Shell 30%, TotalFinaElf 5.54%, Korea LNG 5%, Oman's Partex Oil & Gas (Holdings) Corp. 2%, and Japanese firms Mitsubishi Corp. 2.77%, Mitsui & Co. Ltd. 2.77%, and Itochu Corp. 0.92%.

Related Articles

BP Energy Outlook projects global energy demand to jump 37% by 2035

02/17/2015 Global demand for energy is expected to rise by 37% from 2013 to 2035, or by an average of 1.4%/year, due in large part to ongoing economic expansi...

Bear Head LNG exempted from 2012 Canadian environmental act

02/16/2015 Liquefied Natural Gas Ltd.’s wholly owned subsidiary Bear Head LNG Corp. received notice from the Canadian Environment Assessment Agency (CEAA) tha...

Watching Government: New York moves ahead on LNG

02/16/2015 New York, a state more often associated with fiercely resisting unconventional natural gas exploration and production, established a program to reg...

BG's 2015 budget 'significantly lower' than 2014

02/16/2015 BG Group plans capital expenditures on a cash basis of $6-7 billion in 2015, a range it says is "significantly lower than 2014" due to &q...

Alaska LNG project partners file resource reports with FERC

02/12/2015 A series of draft environmental and socioeconomic reports for the Alaska LNG project have been submitted to the US Federal Energy Regulatory Commis...

Australia Pacific LNG receives first gas at Curtis Island

02/12/2015 The Origin Energy Ltd.-led Australia Pacific LNG (APLNG) has reached a major milestone with first gas arriving at the group’s LNG plant on Curtis I...

InterOil wins arbitration over rights dispute with Oil Search

02/11/2015 The International Chamber of Commerce arbitration panel in London has found in favor of InterOil Corp. in its battle with Oil Search Ltd. over pree...

Study finds FLNG scheme ‘viable’ for Pandora field development

02/11/2015 A recent study has found that Cott Oil & Gas Ltd’s plans to use a floating LNG (FLNG) vessel for development of Pandora gas field in the Gulf o...

OGJ Newsletter

02/09/2015

International news for oil and gas professionals

White Papers

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by

Squeezing the Green: How to Cut Petroleum Downstream Costs and Optimize Processing Efficiencies with Enterprise Project Portfolio Management Solutions

As the downstream petroleum industry grapples with change in every sector and at every level, includin...
Sponsored by

7 Steps to Improve Oil & Gas Asset Decommissioning

Global competition and volatile markets are creating a challenging business climate for project based ...
Sponsored by

The impact of aging infrastructure in process manufacturing industries

Process manufacturing companies in the oil and gas, utilities, chemicals and natural resource industri...
Sponsored by

What is System Level Thermo-Fluid Analysis?

This paper will explain some of the fundamentals of System Level Thermo-Fluid Analysis and demonstrate...

Accurate Thermo-Fluid Simulation in Real Time Environments

The crux of any task undertaken in System Level Thermo-Fluid Analysis is striking a balance between ti...

6 ways for Energy, Chemical and Oil and Gas Companies to Avert the Impending Workforce Crisis

As many as half of the skilled workers in energy, chemical and oil & gas industries are quickly he...
Sponsored by

Available Webcasts



Global LNG: Adjusting to New Realties

When Fri, Mar 20, 2015

Oil & Gas Journal’s March 20, 2015, webcast will look at how global LNG trade will be affected over the next 12-24 months by falling crude oil prices and changing patterns and pressures of demand. Will US LNG production play a role in balancing markets? Or will it add to a growing global oversupply of LNG for markets remote from easier natural gas supply? Will new buyers with marginal credit, smaller requirements, or great need for flexibility begin to look attractive to suppliers? How will high-cost, mega-projects in Australia respond to new construction cost trends?

register:WEBCAST


US Midstream at a Crossroads

When Fri, Mar 6, 2015

Oil & Gas Journal’s Mar. 6, 2015, webcast will focus on US midstream companies at an inflection point in their development in response to more than 6 years shale oil and gas production growth. Major infrastructure—gas plants, gathering systems, and takeaway pipelines—have been built. Major fractionation hubs have expanded. Given the radically changed pricing environment since mid-2014, where do processors go from here? What is the fate of large projects caught in mid-development? How to producers and processors cooperate to ensure a sustainable and profitable future? This event will serve to set the discussion table for the annual GPA Convention in San Antonio, Apr. 13-16, 2015.

This event is sponsored by Leidos Engineering.

register:WEBCAST



On Demand

The Future of US Refining

Fri, Feb 6, 2015

Oil & Gas Journal’s Feb. 6, 2015, webcast will focus on the future of US refining as various forces this year conspire to pull the industry in different directions. Lower oil prices generally reduce feedstock costs, but they have also lowered refiners’ returns, as 2015 begins with refined products priced at lows not seen in years. If lower per-barrel crude prices dampen production of lighter crudes among shale plays, what will happen to refiners’ plans to export more barrels of lighter crudes? And as always, refiners will be affected by government regulations, particularly those that suppress demand, increase costs, or limit access to markets or supply.

register:WEBCAST


Oil & Gas Journal’s Forecast & Review/Worldwide Pipeline Construction 2015

Fri, Jan 30, 2015

The  Forecast & Review/Worldwide Pipeline Construction 2015 Webcast will address Oil & Gas Journal’s outlooks for the oil market and pipeline construction in a year of turbulence. Based on two annual special reports, the webcast will be presented by OGJ Editor Bob Tippee and OGJ Managing Editor-Technology Chris Smith.
The Forecast & Review portion of the webcast will identify forces underlying the collapse in crude oil prices and assess prospects for changes essential to recovery—all in the context of geopolitical pressures buffeting the market.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected