3 contracts signed for $1.6bn Marsa LNG Project in Sohar

02/05/2025 03:13 AST

Sohar Port and Freezone (SOHAR) has reached a key milestone in the Marsa LNG project, a $1.6bn investment joint venture between TotalEnergies and OQ Group, by signing three fundamental contracts that mark the official start of the construction phase.

Signed during Oman Logistics Day, hosted by the Ministry of Transport, Communications and Information Technology, these agreements highlight the project's strategic importance and reinforce SOHAR's role as a vibrant investment ecosystem that transforms trade in Oman and supports the country's energy transition.

Under the first agreement, WSP International's Oman branch was awarded a consultancy services contract, to provide project management, back-office support, design review, site supervision, and contract management services, with the contract running from November 2024 to November 2028.

The second agreement was signed with Boskalis International's Oman branch for dredging works, involving the removal of approximately 3.8mn cubic meters of material to develop the access channel, berth pocket, and turning circle, with project completion expected in September 2025.

The third contract was awarded to Six Construct LLC Oman branch, covering the construction of the LNG jetty, shore protection, and drainage systems, with a construction timeline of 16 months from contract signing.

In a press statement, Emile Hoogsteden, CEO of Sohar Port, said, "The Marsa LNG contracts represent more than just the start of construction. They reflect the trust placed in Sohar Port's world-class infrastructure, strategic location, and operational readiness to deliver on complex, large-scale developments. As a central driver of Oman's energy and logistics ambitions, SOHAR is uniquely positioned to support national megaprojects that accelerate investment, sustainable growth, and the transition to cleaner maritime fuels. Marsa LNG is a clear example of how our integrated ecosystem enables the success of transformative initiatives that reinforce Oman's role as a regional leader in renewable energy and advanced logistics."

With an investment of $1.6bn, Marsa LNG Project will become the Middle East's first dedicated LNG bunkering hub, producing one million metric tonnes of liquefied natural gas annually. Powered entirely by a 300MW solar plant, it will be the region's first facility to operate on 100% renewable energy, aligning directly with Oman's Vision 2040 and national carbon neutrality goals. Once operational, the facility will provide cleaner fuel alternatives for the shipping industry, underpinning the nation's economic diversification and environmental sustainability objectives while marking a transformative step for the region's maritime sector.

As one of the fastest-growing ports in the world, Sohar Port and Freezone continues to leverage on its strategic location and enhance its services, positioning itself as a key logistics hub within the region and across the world boasting container, liquids, dry and breakbulk terminals.

Muscat Daily