Muscat – Oman LNG signed two new term-sheet agreements on Wednesday to supply over 1.5mn metric tonnes of liquefied natural gas (LNG) annually.

The company signed binding term-sheet agreements to supply 0.8mn metric tonnes per year of LNG to Shell International Trading Middle East FZE and 0.75mn metric tonnes per year to OQ Trading, as reported by Oman News Agency.

These new agreements strengthen the strategic partnership between Oman LNG and other international energy firms.

According to the agreements, Shell International Trading will receive gas from Oman LNG for ten years, commencing in 2025, while OQ Trading will be supplied in a four-year deal starting in 2026.

This year, several international energy firms from countries including Japan, China, Turkey, Germany and Bangladesh have signed long-term agreements to import LNG from the sultanate.

The two new deals on Wednesday signify major milestones in Oman LNG’s history, as it marks the successful delivery of 10.4mn metric tonnes annually and a cumulative total of 80mn metric tonnes over the next ten years.

In addition to the previously agreed-upon term-sheet with Shell International Trading for the offtake of another 0.8mn metric tonnes per year in January 2023, this additional term-sheet stre-ngthens Shell’s position as the primary offtaker from Oman LNG post-2024.

Furthermore, the deal paves the way for future collaborations with Oman’s leading oil and gas trading arm, OQ Trading.

The agreements on Wednesday were signed in the presence of H E Salim al Aufi, Minister of Energy and Minerals. Signatories included Hamed al Naamany, CEO of Oman LNG, Walid Hadi, Senior Vice-President and Country Chair Oman Shell (representing Shell International Trading), and Wail al Jamali, CEO of OQ Trading.