TotalEnergies, OQ take FID to launch Marsa LNG project

April 22, 2024
TotalEnergies and OQ, the Oman National Oil Company, made a final investment decision to develop the Marsa LNG project.

TotalEnergies and OQ, the Oman National Oil Company, made a final investment decision (FID) to develop the Marsa LNG project (OGJ Online Dec. 21, 2021).

TotalEnergies signed a sale and purchase agreement (SPA) with Oman LNG to offtake 0.8 million tonnes/year (tpy) of LNG for 10 years from 2025, making the company one of the main offtakers of Oman LNG's production, TotalEnergies said in a release Apr. 22.

Finally, TotalEnergies (49%) and OQ Alternative Energy (51%), confirmed being at an advanced stage of discussions to jointly develop a portfolio of up to 800 Mw, including the 300 Mw peak (Mwp) solar project that will supply Marsa LNG.

Through their joint company Marsa Liquefied Natural Gas, TotalEnergies (80%) and OQ (20%) launch the integrated Marsa LNG project which combines:

  • Upstream gas production: 150 MMcfd of natural gas, coming from the 33.19% interest held by Marsa in Mabrouk North-East field on onshore Block 10, which will provide the required feedstock for the LNG plant. Block 10 production started in January 2023 and reached plateau in April 2024. The FID allows Marsa LNG to extend its rights in Block 10 until its term in 2050.
  • Downstream gas liquefaction: a 1 million tpy capacity LNG liquefaction plant will be built in the port of Sohar. LNG production is expected to start by first-quarter 2028 and is primarily intended to serve the marine fuel market (LNG bunkering) in the Gulf. LNG quantities not sold as bunker fuel will be off-taken by TotalEnergies (80%) and OQ (20%).
  • Renewable power generation: a dedicated 300 MWp PV solar plant will be built to cover 100% of the annual power consumption of the LNG plant, allowing a significant reduction in greenhouse gas emissions.

Low-carbon intensity

The Marsa LNG plant will be 100% electrically driven and supplied with solar power, positioning the site as one of the lowest GHG emissions intensity LNG plants ever built, with a GHG intensity below 3 kg CO2e/boe compared with an average emission intensity of LNG plants of around 35 kg CO2e/boe, TotalEnergies said.

The main engineering, procurement, and construction contracts have been awarded to Technip Energies for the LNG plant and to CB&I for the 165,000-cu m LNG tank.