Oman Online News

Groundbreaking Ceremony Initiates $1.6 Billion Marsa LNG Project in Sohar

Sohar: The groundbreaking ceremony for the Marsa LNG project took place today in the Wilayat of Sohar, marking the launch of the largest joint investment between OQ Exploration and Production (OQEP) and TotalEnergies. The project is valued at $1.6 billion, with TotalEnergies having an 80% stake, while OQEP holds the remaining 20%.

According to Oman News Agency, the event was held under the patronage of Eng. Salim Nasser Al Aufi, Minister of Energy and Minerals, and attended by senior officials from TotalEnergies, 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 project is also expected to enhance in-country value (ICV).

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. This partnership is a model of successful international collaboration in the development of clean energy projects and will contribute to economic diversification policies, attracting foreign investment, and increasing In-Country Value in line with the objectives of Oman Vision 2040.

The project will supply 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.

Eng. Salim Nasser Al Aufi, Minister of Energy and Minerals, emphasized the ministry’s commitment to supporting downstream energy projects as a key pillar for achieving economic integration across various sectors, including industry, trade, ports, and logistics. He highlighted the Marsa LNG project’s role in transitioning towards low-emission energy and reinforcing Oman’s position as a regional hub for clean marine fuel.

Patrick Pouyann©, Chairman and CEO of TotalEnergies, expressed pride in the Marsa LNG project, describing it as a flagship initiative that demonstrates LNG production’s potential for low carbon emissions. He emphasized the project’s role in supporting the shipping sector’s energy transition by providing lower-emissions marine fuel at a strategic location.

Eng. Ahmed Al Azkawi, CEO of OQEP, stated the company’s commitment to innovation and sustainability, noting that the Marsa LNG project represents a significant step forward in ensuring a cleaner and affordable energy future. The project aims to reduce emissions in the shipping industry while reinforcing Oman’s position in the global energy sector.

The Marsa LNG project consists of both upstream and downstream components, including the production of 150 million standard cubic feet of gas per day and the construction of an LNG plant with an annual capacity of one million tonnes. The facility will be powered by a 300-megawatt solar power plant to meet its energy needs.

The project is expected to set a new industrial benchmark for emissions, with its all-electric design and integration of a solar power plant anticipated to avoid more than 200,000 tonnes of CO2 equivalent annually. The Marsa LNG project will be powered by gas production from the Mabrouk North-East field, ensuring a reliable feedstock supply for the LNG liquefaction plant under development in Sohar.

The downstream component includes a state-of-the-art LNG liquefaction plant, with LNG production expected to begin in the first quarter of 2028. 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.

Marsa LNG is strategically located in Sohar, a major global shipping corridor. TotalEnergies has commissioned a new LNG bunkering vessel, the Monte Shams, which will begin operations in mid-2028. The vessel will be equipped with advanced technology to ensure high combustion efficiency and limit emissions, aligning with the highest technical and environmental standards in maritime fuel operations.