Oman lays new tracks to boost LNG infrastructure: Oman’s Energy and Minerals Ministry will build a new liquefied natural gas (LNG) rail connection at the Qalhat Industrial Complex in South Sharqiyah to boost Oman’s LNG production to 15.2 m metric tonnes per year, according to a statement released on Saturday. The project is slated to be operational by 2029 and no investment ticket has been disclosed.

What we know: The new train will have a capacity of 3.8 mm metric tonnes of LNG per year. The Omani government is in the process of finalizing the front-end engineering design (FEED) study for the project in order to announce the project’s final investment decision (FID).

Why is this significant? “The addition of a new LNG train is a key component of Oman’s strategy to solidify its position as a leading producer and exporter of liquefied natural gas in the global market,” Oman’s Energy Minister Salem Al Aufi said in the statement.

LNG is big in Oman: The country — the ninth-largest LNG exporter globally — exported nearly 1 mn metric tonnes of LNG in February 2024, with global exports totalling 33.9 mn tonnes. It also exported 11.4 mn metric tonnes of LNG in 2023, making up 3% of the world’s total LNG exports.

There’s been a lot of Omani LNG action lately: Oman’s Asyad Group is planning an IPO of its LNG transport arm Asyad Shipping by the end of year. TotalEnergies inked a Sale and Purchase Agreement (SPA) with Oman LNG back in April to offtake 0.8 mn metric tons per annum of LNG for a 10-year period beginning in 2025. Oman LNG also signed a SPA with Turkey’s BOTAS Petroleum Pipeline Corporation for the supply of 1 mn metric tonnes per annum (mtpa) of LNG for 10 years and Japan’s Jera for the supply of 0.8 mn metric tons of LNG per year over the same period — both starting 2025.

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