Muscat – Oman LNG has finalised a sale and purchase agreement (SPA) with Germany’s SEFE Secure Energy for Europe to supply 0.4mn metric tonnes of liquefied natural gas (LNG) annually to the European nation.

The SPA was signed on the sidelines of the Berlin Energy Transition Dialogue 2024 under the auspices of H E Eng Salim bin Nasser al Aufi, Minister of Energy and Minerals. The agreement follows a prior commitment wherein Oman LNG signed a binding term-sheet agreement to supply SEFE with 0.4mn metric tonnes per annum of LNG starting in 2026.

The deal marks a milestone in the strategic energy partnership between Germany and Oman, as SEFE is the first German company to purchase Omani gas.

This strategic partnership reflects a significant step forward in bolstering the LNG supply chain, emphasising Oman LNG’s commitment to meeting SEFE’s energy needs, Oman LNG said in a statement.

By entering into this SPA, Oman LNG not only reinforces the sultanate’s reputation as a reliable LNG provider but also demonstrates its adeptness in efficiently managing business operations to deliver secure and sustainable energy to global customers.

Hamed al Naamany, Chief Executive Officer of Oman LNG, said, “The agreement marks a pivotal moment for both Oman LNG and SEFE, symbolising a profound step towards enhanced collaboration. The SPA stands as a testament to the mutual benefits derived from this partnership. 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.”

Furthermore, this strategic partnership with SEFE serves to fortify Oman’s ties with Germany, contributing significantly to energy security initiatives, opening up new opportunities for Oman LNG in the German market and beyond, underscoring its dedication to fostering growth and collaborative endeavors to enrich Oman’s economy.

Dr. Egbert Leage, CEO of SEFE, said, “SEFE is very proud to continue its path of increased cooperation with Oman and to be the front-runner among German companies in importing energy from the country. This partnership diversifies our portfolio and supports our goal to provide Europe with a secure energy supply. We look forward to this being the first of many agreements and also developing a trusting partnership in the hydrogen economy in the medium and long term. Oman is making impressive progress with its ambitious hydrogen strategy.”

As an integrated midstream energy company headquartered in Berlin, SEFE ensures the security of energy supply in Germany and Europe and drives the green energy transformation. The company is active in trading and portfolio management, sales, transportation, and storage of energy and has its strongest presence in Germany and the UK.

As part of its ongoing global marketing campaign, Oman LNG Company has signed several new binding long-term gas supply agreements since the beginning of 2023. The company has succeeded in marketing its LNG supplies beyond 2024 and was able to attract buyers from new markets in the Middle East, East Asia, and Europe.