OQEP, TotalEnergies break ground at $1.6bn Marsa LNG Project in Suhar

05/05/2025 02:41 AST

The groundbreaking ceremony for the Marsa LNG Project took place on Thursday in the Wilayat of Suhar, marking the launch of the largest joint investment between Oman's OQ Exploration and Production (OQEP) and French energy giant TotalEnergies. Valued at $1.6bn, the project is led by TotalEnergies with an 80% stake, while OQEP holds the remaining 20%.

The groundbreaking ceremony was held under the patronage of H E Eng Salim bin Nasser al Aufi, Minister of Energy and Minerals, and attended by senior officials from TotalEnergies, OQEP, international investors, and business leaders.

The Marsa LNG Project reflects OQEP's strategic commitment to developing Oman's energy sector in a way that delivers long-term sustainable value. It also marks the company's expansion into a new energy domain, LNG bunkering, which aligns with its strategy to build a more sustainable energy future. The implementation of the Marsa LNG Project strengthens Oman's position as a regional hub for clean marine fuel and represents a strategic partnership between OQEP and TotalEnergies.

The project is the first of its kind in the Middle East for supplying ships with liquefied natural gas (LNG) as fuel, supporting the reduction of the maritime transport sector's carbon footprint through the establishment of low-emission infrastructure.

In a press statement, H E Aufi said, "The Ministry of Energy and Minerals reaffirms its commitment to supporting downstream energy projects as a key pillar for achieving economic integration across the sectors of industry, trade, ports, and logistics. The Marsa LNG Project embodies this vision through the development of advanced infrastructure to supply ships with LNG as a clean alternative fuel."

"This project represents a major step forward in the transition towards low-emission energy, reinforcing Oman's position as a reliable regional hub for clean marine fuel. It aligns with the objectives of Oman Vision 2040 in sustainability and industrial innovation. We value this partnership and believe that downstream energy investments will drive economic growth, create high-quality and sustainable job opportunities, promote knowledge transfer, and empower national talent to meet the rising global demand for sustainable energy."

Patrick Pouyanné, Chairman and CEO of TotalEnergies, said, "I'm very proud to see Marsa LNG breaking ground, alongside our longstanding partner OQEP, and with the strong support from Oman's authorities. This flagship project demonstrates that LNG production can be very low carbon, contributing to make gas a long-term transition fuel. With an ambitious technical design, we intend to set the standard and pave the way for the next generation of low-emissions LNG plants across the world. We also offer an effective way to support the shipping sector's energy transition, by providing lower-emissions marine fuel in a key location at the entrance of the Gulf."

Eng Ahmed al Azkawi, CEO of OQEP, said, "The Marsa LNG Project represents a bold step forward, harnessing cutting-edge technology and strategic collaboration to ensure a cleaner, and affordable energy future. As the first LNG bunkering hub in the Middle East, Marsa LNG will play a pivotal role in reducing emissions in the shipping industry while reinforcing Oman's position as a key player in the global energy sector. We take immense pride in contributing to this transformative journey, one that sets new standards for low-carbon energy solutions."

The project consists of both upstream and downstream components. The upstream component includes the production of 150mn standard cubic feet of gas per day from Concession Block 10, which will then be transported via OQ's gas network to Sohar Port. The downstream component features a state-of-the-art LNG liquefaction plant with a capacity of 1mn tonnes per year, currently under construction at Sohar Port. LNG production is expected to begin in the first quarter of 2028 and will primarily cater to the marine fuel market (LNG bunkering) in the Gulf region.

Notably, the Marsa LNG facility will be fully electrified and powered entirely by solar energy, positioning it among the lowest greenhouse gas intensity LNG plants globally, with emissions below 3 kg CO2e/boe, nearly 90% lower than the industry average of 35 kg CO2e/boe.

The full electrification of the LNG plant will lead to over 6% increase in net production, with 99% of incoming natural gas converted into LNG. This setup offers greater operational flexibility and reduced maintenance costs. The site will also feature integrated infrastructure, including a 165,000 cubic metres of LNG storage tank and a 500-metre jetty designed to accommodate bunkering vessels and LNG carriers for regional export.

A dedicated 300 MWp solar power plant will be constructed over a 450-hectare area to meet 100% of the LNG plant's energy needs.

Marsa LNG is set to become the Middle East's first and leading LNG bunkering hub, strategically located in Suhar at the entrance to the Gulf, a major global shipping corridor. TotalEnergies has commissioned a new LNG bunkering vessel, the Monte Shams, with a capacity of 18,600 cubic metres. The vessel, named after Oman's Jabal Shams (Mountain of the Sun), will begin operations in mid-2028, joining TotalEnergies' growing fleet that includes Gas Agility (Rotterdam), Gas Vitality (Marseille), and Brassavola (Singapore).

Muscat Daily