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Oman LNG signs 10-year gas supply agreement with Turkey’s Botas Petroleum

20 Apr 2024 By OUR CORRESPONDENT

Muscat – Oman LNG Company announced on Friday the signing of a new sales and purchase agreement (SPA) with Turkey’s Botas Petroleum Pipeline Corporation.

Under the agreement, Oman LNG will supply 1mn metric tonnes per annum of liquefied natural gas (LNG) to Botas Petroleum for 10 years, starting from 2025.

The agreement aims to leverage the partnership between Oman LNG and Botas, while also leveraging Oman’s reputation as a reliable and trusted LNG supplier.

In a statement to Oman News Agency, Hamed al Naamany, CEO of Oman LNG, said, “The sales and purchase agreement with Botas enhances our access to a new market through the offtake of 1mn tonnes of LNG per annum from Oman. Additionally, it strengthens our portfolio through Delivered Ex-Ship (DES) contracts to strategic partners located in Eurasia, a growing market.”

Turkey holds significant value as a major player in providing access to Central and Eastern Europe. With its strategic geographical location, Turkey serves as a vital energy hub and a bridge between Europe and Asia. The country’s extensive pipeline network and well-developed infrastructure enable the efficient transportation of energy resources, including LNG, to various destinations.

Not only does this agreement reinforce Oman LNG’s reputation as a dependable LNG supplier, but it also sustains Oman LNG’s adaptability in managing a shifting energy landscape worldwide.

In a significant development, Oman LNG has signed three gas supply agreements over the last one week.

On Wednesday, the company signed a major sales and purchase agreement with Shell International Trading Middle East to deliver up to 1.6mn metric tonnes per annum of LNG for a 10-year period, starting in 2025. This agreement represents a significant milestone in the ongoing collaboration between the two entities, with Shell emerging as the largest offtaker of liquefied natural gas from Oman LNG.

On Tuesday, Oman LNG signed a significant sales and purchase agreement with JERA, Japan’s largest power company, committing to supply 0.8mn metric tonnes per annum of LNG over 10 years, starting in 2025.

As part of its global marketing efforts, Oman LNG has secured several long-term gas supply agreements since the beginning of 2023.

In March, Oman LNG finalised a sale and purchase agreement with Germany’s SEFE (Secure Energy for Europe) to deliver 0.4mn metric tonnes of LNG annually to Germany. This landmark agreement signifies a milestone in the strategic energy partnership between Germany and Oman, with SEFE becoming the first German company to engage in LNG procurement from Oman.

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