Oman is making strenuous efforts to diversify sources of national income, while working to enhance the production of energy sources from the oil and gas sectors, which contribute significantly to enhancing the country’s annual financial resources and infrastructure. The Arabic magazine “Energy” confirmed in its latest issue that the Sultanate of Oman is continuing its plan to diversify sources of national income in general, while continuing to diversify its customer base in the field of selling liquefied natural gas, as it succeeded during the past year in signing about 14 new agreements in this regard..
According to Omani sources, the government signed several agreements to sell liquefied natural gas with European and Chinese companies at the end of last year and the beginning of this year, including a binding terms agreement with the Energy Insurance Company for Europe, which requires the supply of up to a total of 0.4 million metric tons annually of LNG to Germany starting in 2026. The other agreement was with the Chinese company Unipec to supply liquefied natural gas amounting to a total of 1 million metric tons annually starting in 2025.
These agreements aim to strengthen the strategic partnership of the Oman LNG with various companies operating in the energy field around the world. It is expected that these bilateral agreements of the Omani company with international companies will play an important role in enhancing its commercial reputation in the global energy market, and its ability to produce, market and deliver a clean source of energy.
Today, liquefied natural gas revenues represent one of the government’s sources of national income after oil, which prompts the company concerned to finance a number of its own development projects in addition to strengthening its work in the fields of health care and education, and creating job opportunities by financing training programs and supporting women’s initiatives and projects, environmental protection and traffic safety, within the principle of social responsibility.
In 2013, the gas industry in the Sultanate entered a new era with the merger of Oman LNG and Qalhat LNG to become an integrated entity under the name of Oman LNG. Today, the total number of world destinations to which Omani liquefied gas exports reach is about 13 destinations according to data for the year 2023, led by South Korea, Japan, Croatia, Spain and others, in addition to some Arab countries, including Kuwait and Jordan.
Several Arab countries have entered the field of liquefied gas production over the past years, which helps many countries in the world in Asia and Europe obtain their gas needs, especially with the outbreak of the political and military crisis between Russia and Ukraine, in addition to the temporary cessation of the United States from meeting some countries’ requests to export gas to it due to the temporary suspension of new licenses for American projects, which could cause many concerns about energy security in the world, as these issues are linked to the potential effects of climate change and the global economy.
This is what drives international companies to search for new markets and conclude long-term contracts with them to secure their needs for energy sources, at a time when European countries are seeking alternative supply sources as they move away from Russian gas.
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