Japanese firms due shares of Qalhat LNG

Oman has signed agreements transferring a 3% share of Qalhat LNG SAOC to each of three Japanese companies: Itochu Corp., Mitsubishi Corp., and Osaka Gas.

May 26, 2006

Eric Watkins
Senior Correspondent

LOS ANGELES, May 26 -- Oman has signed agreements transferring a 3% share of Qalhat LNG SAOC to each of three Japanese companies: Itochu Corp., Mitsubishi Corp., and Osaka Gas.

Qalhat LNG SAOC was incorporated in 2003 by the Omani government to own a third 3.3 million tonne/year train under construction next to the Oman LNG complex at Qalhat on the country's northeastern coast (OGJ, Apr. 11, 2005, Newsletter).

The Omani firm has signed long-term agreements to supply Itochu, Mitsubishi, and Osaka 800,000 tonnes/year of LNG each. Qalhat also has a 20-year agreement to supply 1.65 million tonnes/year of LNG to Spain's Union Fenosa Gas.

As a result of the new agreements, 46.84% of Qalhat LNG SAOC will be owned by the Omani government, 36.8% by Oman LNG Union, 7.36% by Fenosa Gas, and the remaining 9% by the three Japanese firms.

Contact Eric Watkins at [email protected].