French energy major Total is looking to develop a liquefied natural gas (LNG) bunkering hub in Oman under a recently signed Memorandum of Understanding (MoU).
The company said it would use its equity gas entitlement as feedstock to supply LNG as a fuel to marine vessels. For this purpose, Total plans to build a new small-scale modular liquefaction plant in Sohar port.
The plant will comprise a train of around 1 Mt per year and will offer the flexibility for expansion as required by the development of the LNG bunkering market.
Under the MoU, signed with the Government of Oman, Total is to develop natural gas resources in Oman, covering both upstream and downstream businesses.
Total and Shell as operator will develop several natural gas discoveries located in the Greater Barik area on onshore Block 6 with respective shares of 25% and 75%, as per the agreement between both companies and before possible State back-in, with the objective of an initial gas production of around 500 MMcfd and a potential to reach 1 bcf/d at a later stage.
“We are pleased to sign this MoU with the Sultanate of Oman that will give us access to new gas resources and the opportunity to develop an integrated gas project,” Arnaud Breuillac, President Exploration & Production at Total, said.
“We will bring our expertise in LNG and will introduce access to a new gas market for the Sultanate. Developing an LNG bunkering service will generate in-country value and job opportunities, and will support industry diversification through fostering the shipping activity in Oman.”