TotalEnergies rolls out integrated gas strategy with gas production and new LNG purchase contract in Oman

World Oil Staff January 20, 2023

(WO) – TotalEnergies has begun gas production from onshore Block 10 in the Sultanate of Oman. The company has also signed a long-term LNG purchase contract with Oman LNG.

Start of gas production from Block 10

TotalEnergies has begun gas production from the Mabrouk North-East field in the onshore Block 10. TotalEnergies holds a 26.55% interest in Block 10, with OQ holding 20% and Shell, operator, holding 53.45%.

The company expects gas production to reach 500 million standard ft3 per day by mid-2024. The produced gas will supply the Omani gas network, feeding both local industry and LNG export facilities. This gas production start-up follows the signing of the concession agreement in December 2021.

Long-term LNG purchase contract

TotalEnergies has also signed an agreement with Oman LNG for the purchase of 0.8 million metric tons of LNG per year over a period of ten years starting from 2025.

Since natural gas power plants release roughly half as much CO2 as coal power plants, this LNG will reduce emissions released into the atmosphere. Electric utilities that purchase this LNG will be able to substitute the gas for coal. This new LNG purchase contract will contribute to TotalEnergies' LNG integrated portfolio and reinforce its flexibility by addressing both the European and Asian markets.

“These announcements are consistent with the ambition of TotalEnergies to contribute to the energy transition and reinforce its long-standing partnerships with both Oman LNG and the Omani State”, said Patrick Pouyanné, Chairman and CEO of TotalEnergies.


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