Oman marks groundbreaking on $1.6 billion Marsa LNG project

Observer

01-05-2025

SUHAR: The Marsa LNG project was launched yesterday, May 1, 2025, in Suhar, marking the largest joint investment between TotalEnergies (80 per cent) and OQEP (20 per cent), valued at $1.6 billion. The event, held under the auspices of Eng Salim bin Nasser al Aufi, Minister of Energy and Minerals, was attended by senior officials, investors, and business leaders.
Speaking exclusively to the Observer, Eng Salim al Aufi explained that the LNG terminal has been designed to accommodate a potential expansion into a second phase. However, no decision has been made regarding the second terminal, as it will depend on the availability of gas resources and the outcome of an economic feasibility study.
He noted that the loading jetty, storage tanks, and electricity capacity are all in place, and the infrastructure is fully prepared. Even the designated platform land is ready. 'The only remaining step is a final decision, which hinges on the project's economic viability moving forward. We will monitor how the first project performs, as it relies on the gas fields' ability to supply,' he said.
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 (ICV) in line with the objectives of Oman Vision 2040.
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.
Patrick Pouyanné, Chairman and CEO of TotalEnergies, said, 'This project proves LNG can be low-carbon, setting a new standard for next-generation plants while supporting cleaner marine fuel at a key gateway to 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."
The project consists of both upstream and downstream components. The upstream component includes the production of 150 million 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 includes the construction of an LNG plant with an annual capacity of one million tonnes, supported by a 300-megawatt solar power plant to meet the facility's annual energy needs.
Initial work has commenced at the Marsa LNG site in Sohar Port
The Marsa LNG project will achieve two firsts in the region: the establishment of a facility with emissions of less than 3 kilogrammes of CO₂ equivalent per barrel of oil equivalent to reduce greenhouse gas emissions, and the creation of the first LNG bunkering hub in the Middle East.
The project will rely entirely on electric power, making it the world's lowest-emission LNG facility. It will set a new industrial benchmark for emissions, with its all-electric design and integration of a solar power plant expected to avoid more than 200,000 tonnes of CO₂ equivalent annually over the life of the project, compared to a conventional gas-fueled design.
The Marsa LNG project will be powered by upstream gas production of 150 million cubic feet per day (Mcf/d), sourced from the Mabrouk North-East field in onshore Block 10. Marsa LNG holds a 33.19 per cent interest in the field, securing its entitlement and ensuring a reliable feedstock supply for the LNG liquefaction plant under development in Sohar.
The downstream component features a state-of-the-art LNG liquefaction plant with a capacity of 1 million tonnes per year (Mt/y), 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.
The full electrification of the LNG plant will lead to over 6 per cent increase in net production, with 99 per cent 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 m³ 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 per cent of the LNG plant's energy needs. The solar farm will comprise 500,000 high-efficiency bifacial photovoltaic modules with single-axis tracking, smart inverters, and an Energy Monitoring System (EMS) to ensure stable power generation. This initiative aligns with Oman's national energy strategy to increase the share of renewables in its energy mix to 30 per cent by 2030, in support of Oman Vision 2040.
TotalEnergies has commissioned a new LNG bunkering vessel, the Monte Shams, with a capacity of 18,600 m³. 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).
The Monte Shams will be outfitted with best-in-class technology, including an engine that reduces fuel consumption by 7 per cent and ensures high combustion efficiency to limit methane emissions. The vessel will also feature continuous emission monitoring systems and will undergo regular leak detection and repair (LDAR) campaigns, aligning with the highest technical and environmental standards in maritime fuel operations. It will service a broad range of vessels, including containerships, tankers, and large cruise ships.