French energy giant TotalEnergies and Oman National Oil Company (OQ) have reached the final investment decision (FID) on the Marsa LNG project, which will feature an LNG plant completely powered by renewable energy that will produce LNG for use as a marine fuel for maritime transportation.
Through their joint company Marsa Liquefied Natural Gas (Marsa), TotalEnergies (80%) and OQ (20%) have launched the integrated Marsa LNG project which combines upstream gas production, downstream gas liquefaction, and renewable power generation.
TotalEnergies had signed a Sale and Purchase Agreement (SPA) with Oman LNG to offtake 0.8 Mtpa of LNG for ten years from 2025, making the company one of the main offtaker of Oman LNG's production.
According to the companies, 150 Mcf/d of natural gas, coming from the 33.19% interest held by Marsa in the Mabrouk North-East field on onshore Block 10, will provide the required feedstock for the LNG plant, while a 1 Mt/y capacity LNG liquefaction plant will be built in the port of Sohar.
The LNG production is expected to start by first quarter 2028 and is primarily intended to serve the marine fuel market (LNG bunkering) in the Gulf. LNG quantities not sold as bunker fuel will be off-taken by TotalEnergies and OQ, the partners said.
The project will feature a dedicated 300 MWp PV solar plant, to be built to cover 100% of the annual power consumption of the LNG plant, allowing a significant reduction in greenhouse gas emissions.
The main Engineering, Procurement and Construction (EPC) contracts have been awarded to Technip Energies for the LNG plant and to CB&I for the 165,000 m3 LNG tank. The plant will use electric-driven motors instead of conventional gas turbines.
Technip Energies said the contract is valued between $530 million and $1.06 billion, without disclosing the exact figure.
The ambition of the Marsa LNG project is to serve as the first LNG bunkering hub in the Middle East, showcasing an available and competitive alternative marine fuel to reduce the shipping industry's emissions.
“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. We are especially pleased to deploy the two pillars of our transition strategy, LNG and renewables, and thus support the Sultanate on a new scale in the sustainable development of its energy resources,” said Patrick Pouyanné, Chairman and CEO of TotalEnergies.
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