Global energy major Total is expected to take a final investment decision on its plans for an LNG bunkering hub at Sohar Port - the first such facility in the Middle East - before the end of this year, a report said.
The project will add considerable value to Oman’s gas sources, said a senior executive of the energy giant.
This project is intended to establish Oman as a regional LNG bunkering hub capable of supplying LNG as a fuel to marine vessels.
“The Sohar project is part of a fully integrated project from upstream to downstream,” said Sophie Nasser, Business Development & Asset Management, Total. “On the upstream side, we are partnering with Shell and (Oman Oil Company Exploration & Production — part of OQ Group) to produce gas from a concession — basically two blocks (Blocks 10 and 11) which were (carved out) from PDO’s assets. The gas is from the Barik and Amin reservoirs, which are unconventional tight gas resources.”
Nasser said Total is “working hard to finalise all of the agreements” with the respective partners concerned. “Hopefully, from our side, we will take an FID before the end of this year,” she noted.
Total, said Nasser, is also working closely with Sohar Port which will host the LNG project on a piece of land that is proposed to be reclaimed from the sea.
The Sohar South Zone, she said, will have to be built first before construction commences on the LNG project.
In July last year, McDermott International was awarded a sizeable contract by Total Oman E&P Development in partnership with Oman Oil Company to provide front-end engineering design (FEED) services for the Sohar LNG Bunkering Project.
The scope of work during the FEED phase includes fully defining the onshore mid-scale LNG facilities and preparing a competitive tender for the engineering, procurement, supply, construction and commissioning phase. The global LNG bunkering market is entering a rapid growth period driven largely by the International Maritime Organization's legislation to significantly limit sulphur emissions.
