Oman LNG has announced the signing of two binding term sheet agreements to supply 0.8 million metric tonnes per annum of LNG to Shell International Trading Middle East FZE and 0.75 million metric tonnes per annum of LNG to OQ Trading.
The step comes to leverage the strategic partnership between Oman LNG and other energy firms.
Based on these agreements, Shell International Trading Middle East FZE will receive 0.8 million metric tonnes per annum of LNG from the company for 10 years starting from 2025 whereas OQ Trading will receive 0.75 million metric tonnes per annum of LNG under a 4-year deal beginning in 2026.
Both agreements form significant steps in the history of Oman LNG and a major milestone, where they mark the completion of delivering 10.4 mtpa per annum and a total of 80 mtpa over a period of 10 years. This achieves Oman LNG’s goal to renew its contract beyond the year 2024 successfully in less than 12 months since the kickoff of this campaign.
With the previously agreed term sheet with Shell International Trading Middle East FZE for the offtake of another 0.8 million metric tonnes per year in January 2023, this additional term sheet makes Shell the biggest off-taker from Oman LNG beyond 2024. Additionally, it comes as a promising step for further collaborations with Oman’s primary oil and gas trading arm, OQ Trading.
