TotalEnergies Announces FID for Marsa LNG Bunkering Project

TotalEnergies has reached a significant milestone with the final investment decision (FID) of the USD 1 billion Marsa Liquefied Natural Gas (LNG) bunkering project in Oman. Executives from the Oman National Oil Company and TotalEnergies jointly announced this decision. The primary objective of the Marsa LNG project is to establish the first LNG bunkering hub in the Middle East.

TotalEnergies has recently signed a Sale and Purchase Agreement (SPA) with Oman LNG, securing the offtake of 0.8 Mtpa of LNG for ten years, commencing in 2025. This agreement solidifies TotalEnergies' position as one of the main off-takers of Oman LNG's production.

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Additionally, the project has awarded the engineering, procurement, and construction (EPC) contract to Technip Energies. This EPC contract entails the creation of a natural gas liquefaction train with an LNG production capacity of 1 MTPA.

Instead of using conventional gas turbines, the plant will use electric-driven motors and power itself with renewable electricity from a nearby solar power plant in Oman. This renewable energy source is projected to cover 100% of the LNG plant's annual power consumption, positioning the site as one of the world's lowest greenhouse gas-intensity LNG plants.

The LNG produced will primarily serve as marine fuel, contributing to the reduction of the shipping industry’s carbon footprint. Moreover, the Marsa LNG project is expected to create long-term employment opportunities and deliver significant socio-economic benefits to the city of Sohar and the surrounding region.

An Overview of the Marsa LNG Project

Marsa LNG Project location

The joint venture between TotalEnergies (80%) and Oman National Oil Company (20%) will launch the integrated Marsa LNG project, which combines:

Upstream Gas Production

Natural gas of 150 Mcf/d coming from the Mabrouk North-East field on onshore Block 10 will provide the required feedstock for the LNG plant. Block 10 production started in January 2023 and reached a plateau in April 2024. The FID allows Marsa LNG to extend its rights in Block 10 until its term in 2050.

Downstream Gas Liquefaction

An LNG liquefaction plant with a capacity of 1 MTPA will be built in the port of Sohar. LNG production is expected to start by the first quarter of 2028 and is primarily intended to serve the LNG market in the Middle East. LNG quantities not sold as bunker fuel will be off-taken by TotalEnergies (80%) and OQ (20%).

Renewable Power Generation

A dedicated 300 MW PV solar plant will be built to cover 100% of the annual power consumption of the LNG plant, allowing a significant reduction in greenhouse gas emissions.

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