TotalEnergies and Oman National Oil Co. to Build LNG Plant and Solar Project in Sohar

TotalEnergies and Oman National Oil Company (OQ) have reached a final investment decision on the Marsa LNG project, which will feature a 1 million-ton-per-year LNG plant powered entirely by renewable energy to produce LNG for use as a marine fuel.

The project, located in the port of Sohar, Oman, will include a 300 MW solar plant to cover the LNG plant's power consumption, reducing greenhouse gas emissions.

The Marsa LNG project is a joint venture between TotalEnergies (80%) and OQ (20%). It will draw 150 million cubic feet per day of natural gas from the Mabrouk North-East field on onshore Block 10. LNG production is expected to commence by the first quarter of 2028 and will primarily serve the marine fuel market in the Gulf region, establishing the first LNG bunkering hub in the Middle East.

The LNG plant will be one of the lowest greenhouse gas emission intensity LNG facilities globally, with emissions below 3 kg CO2e/boe, a reduction of over 90% compared to the industry average. The main EPC contracts have been awarded to Technip Energies for the LNG plant and CB&I for the LNG tank.

Why this matters: The Marsa LNG project showcases TotalEnergies' strategy of combining fossil fuel production with renewable energy generation to support the energy transition. It also positions Oman as a hub for low-carbon LNG bunkering operations, providing a sustainable alternative marine fuel to reduce shipping emissions in the Middle East.

The project is expected to generate long-term employment and socioeconomic benefits for the Sohar region. "This is a very competitive project, which benefits from the synergies between the LNG plant and the solar farm, as well as from access to competitive gas from Oman," said Patrick Pouyanné, Chairman and CEO of TotalEnergies. The Marsa LNG project aims to serve as the first LNG bunkering hub in the Middle East, providing a sustainable alternative marine fuel to reduce the shipping industry's emissions.

Key Takeaways

• TotalEnergies and Oman's OQ reach FID on Marsa LNG project, a 1 MT/year LNG plant powered by renewables.
• The LNG plant will have one of the lowest greenhouse gas emissions globally, below 3 kg CO2e/boe.
• Marsa LNG will establish the first LNG bunkering hub in the Middle East, providing sustainable marine fuel.
• The project combines fossil fuel production with renewable energy to support the energy transition.
• Marsa LNG is expected to generate long-term employment and socioeconomic benefits for the Sohar region.