Shell gets first cargo under new Oman LNG deal

State-owned Oman LNG loaded the first liquefied natural gas cargo to energy giant Shell under its new long-term supply deal.

Oman LNG announced the shipment via social media on Tuesday.

Howveher, the firm did not provide any further details regarding the shipment.

The 2018-built 173,400-cbm, Magdala, was located on Wedesday at the LNG plant in Sur near Qalhat, its AIS data provided by VesselsValue shows.

In April last year, Oman LNG signed a 10-year sales and purchase agreement with a unit of LNG giant Shell.

Under the SPA, Oman LNG will supply Shell International Trading Middle East (SITME) with 1.6 million metric tonnes per annum of LNG.

Oman LNG said at the time the long-term deal will start in 2025.

Oman LNG announced in January 2023 that it signed a binding term sheet with Shell for 0.8 mtpa of LNG per year, and after that, it signed another binding term sheet with Shell in August for an additional 0.8 mtpa.

With these two deals, Shell became Oman LNG’s largest offtaker.

Shell has been a shareholder in Oman LNG with a 30 percent stake since its inception.

French energy giant TotalEnergies, which is also a shareholder in Oman LNG recently loaded the first LNG cargoe as part of its new long-term offtake deal with Oman LNG.

In April last year, Oman LNG signed a sale and purchase agreement with TotalEnergies, converting the previously signed term sheet.

Under the SPA, TotalEnergies will offtake 0.8 mtpa of LNG for ten years from 2025.

The Oman LNG complex in Qalhat includes three trains with a capacity of about 11.4 mtpa.

Last year, Oman LNG signed shareholding deals with international companies, including TotalEnergies and Shell.

Besides Oman LNG and Qalhat LNG shareholding agreements, Oman LNG, in which the government of Oman holds 51 percent, also signed a gas supply agreement with state-owned Integrated Gas Company (IGC) to extend the gas supplies beyond 2024.

Oman LNG in collaboration with its shareholders, approved the extension of the company’s operations beyond 2024 that linked these key agreements for a period of 10 years from 2025 to 2034 for Oman LNG and 2026 to 2029 for Qalhat LNG.

In addition, Oman LNG plans to add a new liquefaction train at its three-train Qalhat complex by 2029.

The new train will boost Oman’s LNG production to 15.2 mtpa.

Most Popular

Top 5 news of the week July 6-12

LNG Prime brings you the five most popular news stories on our platform during the week of July 6-12, 2026.
spot_img

More News Like This

ARC Resources shareholders approve $16.4 billion acquisition by Shell

Canadian gas producer ARC Resources said that its shareholders have approved the previously announced acquisition by UK-based LNG giant Shell, valued at approximately $16.4 billion, including debt.

Shell, Focol take FID on Bahamas LNG terminal

UK-based LNG giant Shell and its partner Freeport Oil Company (Focol) have taken a final investment decision on a small-scale LNG regasification terminal in the Bahamas.

Shell expects ‘significantly higher’ LNG trading results in Q2

UK-based LNG giant Shell expects trading and optimization results for its integrated gas business in the second quarter of this year to be "significantly higher" compared to the previous quarter.

Shell, PV Gas seal LNG supply deal

Petrovietnam Gas, a unit of state-owned Petrovietnam, said it had signed a five-year deal to buy LNG from a unit of UK-based LNG giant Shell.