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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Qalhat LNG’s 2016 revenues at $855m

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By Conrad Prabhu — MUSCAT: APRIL 23 - Qalhat LNG, which owns one of the three trains that together make up the integrated LNG complex at Qalhat in South Al Sharqiyah Governorate, achieved revenues totalling $855 million in 2016.  This compares with revenues of $870 million in 2015.


Of the 133 LNG cargoes shipped from the Qalhat complex to markets around the world, 42 shipments belonged to Qalhat LNG. The balance 91 cargoes were volumes generated by Oman LNG-owned trains.


Output from Qalhat LNG, covering a total contracted volumes of around 3.3 million tons per annum (mtpa), is governed by three long-terms Sales and Purchase Agreements (SPAs). This includes a 20-year SPA with Spain’s Union Fenosa Gas covering 1.65 mtpa of LNG, a 17-year SPA with Osaka Gas of Japan (covering 0.8 mtpa of LNG), and a 15-year SPA with Mitsubishi Japan (for the balance 0.8 mtpa of LNG).


In other highlights of its 2016 financial year, Qalhat LNG also achieved savings of around $20 million as a result of optimisation of LNG shipping operations. The company reported the successful diversion of 23 cargoes from its annual delivery plan for optimised earnings. It also achieved a cost saving of $4 million via the effective management of surplus fund to offset financing costs.  Furthermore, investments generated a return of 18 per cent during the year, the company said.


Qalhat LNG owns the third of the three liquefactions trains, although all three trains are operated by Oman LNG. The Omani government (with a 46.84 per cent stake) and Oman LNG (with a 36.8 per cent share) are the main shareholders in Qalhat LNG.  The other shareholders are Union Fenosa (7.36 per cent), Mitsubishi Corporation (3 per cent), Itochu Corporation (3 per cent) and Osaka Gas Australia Pty (3 per cent).


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