Shell agrees to extend partnership for Oman LNG

Shell plc subsidiary Shell Gas BV and partners in the Oman LNG LLC venture signed an amended shareholders’ agreement for Oman LNG LLC extending the business beyond 2024.Oman LNG in turn signed various agreements to secure its gas supply until 2034, Shell said in a release Oct. 23.

Under these agreements, Shell Gas will remain the largest private shareholder in Oman LNG, with a 30% shareholding, and continues its role as technical adviser. In addition and based on previously signed term sheets, Shell International Trading Middle East FZE will purchase up to 1.6 million tonnes/year (tpy) of LNG from Oman LNG from 2025 to 2034, making Shell the largest LNG off-taker from Oman LNG.

Oman LNG operates a three-train plant with production capacity of 11.4 million tpy of LNG.

Shell in Oman holds interests in Petroleum Development Oman (34%), Oman LNG (30%) and Shell Oman Marketing Co. (49%). In January 2023, Shell started producing gas from Mabrouk field in Block 10, in which Shell holds 53.45% interest. From 2025, Shell is expected to become the largest buyer of LNG from Oman under contracts signed with Oman LNG.