Oman LNG has confirmed a sales and purchase agreement (SPA) to supply 0.4 million tonnes per year (Mtpa) of liquefied natural gas (LNG) to SEFE Securing Energy for Europe.
The four-year deal, to run between 2026-2029, was signed on the sidelines of the Berlin Energy Transition Dialogue 2024 and follows the binding term-sheet signed in August 2023.
SEFE becomes the first German company to purchase Omani LNG.
It is the latest security-enhancing move from SEFE, which signed a Heads of Agreement deal with ADNOC for the supply of LNG from the Ruwais plant, starting in 2028, on Monday (March 18).
Hamed Al Naamany, CEO of Oman LNG, said the SPA stands as a testament to the mutual benefits derived from this partnership.
He said, “For Oman LNG, it signifies access to new markets, technological advancements from Germany, and broader economic growth opportunities. Meanwhile, SEFE gains a reliable and trusted energy supplier, strengthening its position in the European market.”
The Sultanate produced its first shipment of LNG in 2000 after the first of an initial two-train plant began operations under Oman LNG.
With a third train under Qalhat LNG, LNG has played a greater role in contributing to the national economy as the two companies, that integrated in 2013 and now operate as Oman LNG, have worked to develop the sector.
A recent study from Gas Strategies expects gas demand to be stable in Oman in the next 20 years, with supply for LNG exports being an important foundation of demand.
Dr Egbert Laege, CEO of SEFE, said the partnership diversifies its portfolio and supports its goal to provide Europe with a secure energy supply.
He said, “We look forward to this being the first of many agreements and to developing a trusting partnership in the hydrogen economy in the medium and long term. The Sultanate of Oman is making impressive progress with its ambitious hydrogen strategy.”
Oman has chalked up $38bn in green hydrogen investments with its renewables capacity rising to 22.5GW.
The Government of Oman, Hydrogen Oman (Hydrom), Port of Amsterdam, Zenith Energy Terminals and GasLog have agreed to study the development of a liquid hydrogen supply chain.
Under the Joint Study Agreement (JSA), Omani green hydrogen will be delivered to the Port of Amsterdam, the Netherlands, and onwards throughout Europe.
