Formalities and capitalization for Oman's liquefied natural gas export project are complete.
This means front-end engineering can begin with an aim of starting liquefaction plant construction in mid-1996. First cargoes of LNG are expected to be ready for shipment in early 2000.
The $2 billion liquefaction plant is to have 6.2 million metric tons/year production capacity.
The project calls for 900 MMcfd of gas from Central Oman to move through a 360 km pipeline to the plant.
Project cost during its entire life is estimated at $9 billion.
Oman's Ministry of Petroleum & Minerals said the government and Oman LNG LLC, the company set up to develop Omani gas exports, agreed on gas supply. This guarantees supply of 7 tcf of government gas reserves to the LNG export project.
Plant construction contract bidders delivered proposals in July and are ready to start work by yearend. The ministry said the bidders are M.W. Kellogg Co. with JGC Corp., Chiyoda Corp., Foster Wheeler Energy Ltd. with Fluor Daniel Inc., and Bechtel Corp. with Snamprogetti SpA and Technip SA.
An alternative plant site is under consideration at Al Ghalilah, 50 km closer to gas fields than the already proven site at Bimmah.
Contracts for a full site survey at Al Ghalilah have been let. The ministry said the new site would be the heart of a government industrial area and enable the port of Sur to develop its industrial base.
The LNG tanker fleet is expected to involve seven or eight vessels, depending on customers. Buyers in the Far East, Asia, and southern Europe are said to have shown interest.
Oman LNG partners are the Omani government 51%, Royal Dutch/Shell 34%, Total SA 6%, Mitsubishi Corp. and Mitsui & Co. 3% each, Partex 2%, and Itochu Corp. 1%.
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