Oman’s Sohar Port is set to house a new $1.6 billion liquefied natural gas bunkering plant following an agreement inked between OQ and TotalEnergies, reports Arab News.
LNG Bunkering project
Bunkering involves transferring LNG to a ship for use as fuel, offering a cleaner alternative compared to traditional methods such as marine gas oil and heavy fuel oil.
TotalEnergies will provide 80 percent of the investment, with OQ contributing the remaining 20 percent through their joint venture, Marsa Liquefied Natural Gas LLC.
The Marsa LNG project, the first of its kind in the Middle East, is poised to have significant economic implications. It’s expected to bolster Oman’s treasury revenues and enhance local value through collaborative local investments.
Patrick Pouyanne, chairman and CEO of TotalEnergies, said: “We are proud to open a new chapter in our history in the Sultanate of Oman with the launch of the Marsa LNG project, together with our partner OQ, demonstrating our long-term commitment to the country.”
He explained that the innovative project illustrates their pioneer spirit and showcases the relevance of their integrated multi-energy strategy, with the ambition of being a responsible player in the energy transition.
The plant, powered entirely by solar energy, is expected to contribute to the reduction of carbon emissions and the shipping industry’s overall carbon footprint. Notably, it is projected to emit less than 3 kg of carbon dioxide per oil equivalent barrel.
Furthermore, the new bunkering plant reflects OQ’s commitment to strategically contributing to the development of the country’s energy sector for creating long-term sustainable value.
OQ Chairman Mulham Basheer Al-Jarf noted: “The project will contribute to OQ Trading’s position as a key player in the LNG markets.”
The project is expected to provide additional direct financial revenues to Oman, increase traffic to the city’s ports, and enhance local investments.
It is also set to expand the gas and alternative energy supply network and create new job opportunities in the country.
Did you subscribe to our daily Newsletter?
It’s Free! Click here to Subscribe
Source: Arab News
