Thursday, March 28, 2024 | Ramadan 17, 1445 H
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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Gas supply prioritised for existing consumers: Aufi

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Oman’s output of natural gas, although bolstered by prodigious supplies from BP Oman’s Khazzan field in Block 61, is primarily earmarked for existing consumers. Consequently, allocations towards any new customer can be considered only after an “extremely careful” assessment of the availability of adequate volumes to meet the long-term requirement of the project, according to the Under-Secretary of the Ministry of Oil and Gas.


Citing long-standing policy governing the allocation of gas, Salim bin Nasser al Aufi (pictured) said the power sector is accorded top priority in terms of its requirements, followed by upstream operators that require gas for their oilfield operations. Next in the pecking order are industries and petrochemical plants that depend on gas either as feedstock or an energy resource. Further down the ranking is Oman LNG, which operates a three-train gas liquefaction complex at Qalhat with the output of LNG exported to international markets.


“Then comes any new projects, assuming we have the gas to supply them for the next 15-25 years, depending on the agreement that is signed,” the Under-Secretary stated.


Gas production in the Sultanate was lifted in September 2017 by supplies from BP Oman’s Khazzan development averaging 1 billion cubic feet (bcf) per day. This output is projected to rise to 1.5 bcf/day when BP’s Ghazeer field, currently under development in Block 61, comes on stream in 2021.


Speaking at a media briefing hosted by the Ministry last week, the official noted that the improving gas landscape in the Sultanate did not imply a windfall in surplus volumes. “Our main priority is to make sure the existing consumers are supplied gas as per agreements we have with them. In terms of future projects, we will look at (their requirements) extremely carefully just to make sure we don’t embark on a commitment that will put us in a difficult position later on to fulfil’’.


Oman’s gas production averaged 125 million cubic metres (mcm) per day in 2018, amounting to a total output (including volumes imported via Dolphin Energy) of 45.721 billion cubic metres (bcm). Roughly a third of this supply (15.684 bcm) went to Oman LNG + Qalhat LNG. Local industries and petrochemical plants came next with a 26 per cent share (12.056 bcm), followed by the oilfield sector (9.511 bcm) representing a 21 per cent share. Power and water desalination plants accounted for 18 per cent of total supplies (8.312 bcm), while industries operating in clusters run by Madayn consumed 1 per cent of the total (0.157 bcm).


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