Groundbreaking
Ceremony Held for Marsa LNG Project Worth USD 1.6 Billion in Sohar
Sohar,
1 May (ONA) — The groundbreaking ceremony for the Marsa LNG project took
place today in the Wilayat of Sohar, marking the launch of the largest joint
investment between OQ Exploration and Production (OQEP) and TotalEnergies. The
project is valued at $1.6 billion, with TotalEnergies having an 80% stake,
while OQEP holds the remaining 20%.
The
event was held under the patronage of Eng. Salim Nasser Al Aufi, Minister of
Energy and Minerals, and attended by senior officials from TotalEnergies,
international investors, and business leaders.
The
Marsa LNG project reflects OQEP’sstrategic commitment to developing
Oman’s energy sector in a way that delivers long-term sustainable value. It
also marks the company’s expansion into a new energy domain,LNG
bunkering,which aligns with its strategy to build a more sustainable
energy future. The project is also expected to enhance in-country value (ICV).
The
implementation of the Marsa LNG project strengthens Oman’s position as a
regional hub for clean marine fuel and represents a strategic partnership
between OQEP andTotalEnergies. This partnership is a model of successful
international collaboration in the development of clean energy projects and
will contribute to economic diversification policies, attracting foreign
investment, and increasing In-Country Value in line with the objectives of Oman
Vision 2040.
The
project will supply ships with liquefied natural gas (LNG) as fuel, supporting
the reduction of the maritime transport sector’s carbon footprint through the
establishment of low-emission infrastructure.
Eng.
Salim Nasser Al Aufi, Minister of Energy and Minerals, said, “The Ministry of
Energy and Minerals reaffirms its commitment to supporting downstream energy
projects as a key pillar for achieving economic integration across the sectors
of industry, trade, ports, and logistics. The Marsa LNG project, a strategic
partnership between OQ Exploration and Production and TotalEnergies, embodies
this vision through the development of advanced infrastructure to supply ships
with liquefied natural gas as a clean alternative fuel.”
He
added, “This project represents a major step forward in the transition toward
low-emission energy, reinforcing Oman’s position as a reliable regional hub for
clean marine fuel. It aligns with the objectives of Oman Vision 2040 in
sustainability and industrial innovation. We value this partnership and believe
that downstream energy investments will drive economic growth, create
high-quality and sustainable job opportunities, promote knowledge transfer, and
empower national talent to meet the rising global demand for sustainable
energy.”
Patrick
Pouyanné, Chairman and CEO of TotalEnergies, said, “I’m very proud to see Marsa
LNG breaking ground, alongside our longstanding partner OQEP, and with the
strong support from Oman’s authorities. This flagship project demonstrates that
LNG production can be very low carbon, contributing to making gas a long-term
transition fuel. With an ambitious technical design, we intend to set the
standard and pave the way for the next generation of low-emissions LNG plants
across the world. We also offer an effective way to support the shipping
sector’s energy transition, by providing lower-emissions marine fuel in a key
location at the entrance of the Gulf.”
Eng.
Ahmed Al Azkawi, CEO of OQEP, said, “At OQEP, we are committed to advancing
innovation and sustainability across Oman’s energy sector. The Marsa LNG
project represents a bold step forward, harnessing cutting-edge technology and
strategic collaboration to ensure a cleaner, and affordable energy future. As
the first LNG bunkering hub in the Middle East, Marsa LNG will undertake a
pivotal role in reducing emissions in the shipping industry while reinforcing
Oman’s position as a key player in the global energy sector.”
The
project consists of both upstream and downstream components. The upstream
component includes the production of 150 million standard cubic feet of gas per
day from Concession Block 10, which will then be transported via OQ’s gas
network to Sohar Port. The downstream component includes the construction of an
LNG plant with an annual capacity of one milliontonnes, supported by a
300-megawatt solar power plant to meet the facility’s annual energy needs.
The
Marsa LNG project include the establishment of a facility with emissions of
less than 3 kilogrammes of CO₂ equivalent per barrel of oil equivalent to
reduce greenhouse gas emissions, and the creation of the first LNG bunkering
hub in the Middle East.
The
project will rely entirely on electric power, making it the world’s
lowest-emission LNG facility. It will set a new industrial benchmark for
emissions, with its all-electric design and integration of a solar power plant
expected to avoid more than 200,000tonnesof CO₂ equivalent annually
over the life of the project, compared to a conventional gas-fueled design.
The
Marsa LNG project will be powered by upstream gas production of 150 million
cubic feet per day (Mcf/d), sourced from the Mabrouk North-East field in
onshore Block 10. Marsa holds a 33.19 percent interest in the field, securing
its entitlement and ensuring a reliable feedstock supply for the LNG
liquefaction plant under development in Sohar.
The
downstream component features a state-of-the-art LNG liquefaction plant with a
capacity of 1 million tonnes per year (Mt/y), currently under construction at
Sohar Port. LNG production is expected to begin in the first quarter of 2028
and will primarily cater to the marine fuel market (LNG bunkering) in the GCC
region. Notably, the Marsa LNG facility will be fully electrified and powered
entirely by solar energy, positioning it among the lowest greenhouse gas (GHG)
intensity LNG plants globally, with emissions below 3 kg CO2e/boe, nearly 90
percent lower than the industry average of 35 kg CO2e/boe.
The
full electrification of the LNG plant will lead to over 6 percent increase in
net production, with 99 percent of incoming natural gas converted into LNG.
This setup offers greater operational flexibility and reduced maintenance
costs. The site will also feature integrated infrastructure, including a
165,000 m³ LNG storage tank and a 500-metre jetty designed to accommodate
bunkering vessels and LNG carriers for regional export.
A
dedicated 300 MWp solar power plant will be constructed over a 450-hectare area
to meet 100 percent of the LNG plant’s energy needs. The solar farm will
comprise 500,000 high-efficiency bifacial photovoltaic modules with single-axis
tracking, smart inverters, and an Energy Monitoring System (EMS) to ensure
stable power generation. This initiative aligns with Oman’s national energy strategy
to increase the share of renewables in its energy mix to 30 percent by 2030, in
support of Oman Vision 2040.
Marsa
LNG is set to be strategically located in Sohar at the entrance to the Gulf, a
major global shipping corridor. TotalEnergies has commissioned a new LNG
bunkering vessel, the Monte Shams, with a capacity of 18,600 m³. The vessel,
named after Oman’s Jabal Shams (“Mountain of the Sun”), will begin operations
in mid-2028, joining TotalEnergies’ growing fleet that includes Gas Agility
(Rotterdam), Gas Vitality (Marseille), and Brassavola (Singapore).
The
Monte Shams will be outfitted with best-in-class technology, including an
engine that reduces fuel consumption by 7 percent and ensures high combustion
efficiency to limit methane emissions. The vessel will also feature continuous
emission monitoring systems and will undergo regular leak detection and repair
(LDAR) campaigns, aligning with the highest technical and environmental
standards in maritime fuel operations. It will service a broad range of
vessels, including containerships, tankers, and large cruise ships.
—Ends/AG
