TotalEnergies and OQEP break ground on Marsa LNG, Middle East's first bunkering hub
TotalEnergies and Oman's OQ Exploration and Production announced the groundbreaking of their Marsa LNG plant.
The commencement of the project, coming up in the port of Sohar, northern Oman, comes one year after the final investment decision.
The 1 million ton per year (Mt/y) liquefaction plant is being built by Marsa LNG LLC, a joint company between TotalEnergies (80 per cent equity stake) and OQEP (20 per cent stake).
The LNG production, which is expected to start in the first quarter of 2028, is primarily intended to serve the marine fuel market – LNG bunkering – in the Gulf.
The Marsa LNG plant will be fully electrified, with provision for a 300 megawatt-peak (MWp) photovoltaic solar farm that will supply the equivalent of the plant's annual energy needs.
The plant is billed as one of the lowest carbon intensity LNG plants in the world, with less than 3 kg CO 2 e/boe of scope 1 and 2 emissions.
Located at the entrance to the Gulf, the Marsa LNG site will be the first LNG bunkering hub in the Middle East, the companies said.
Patrick Pouyanné, Chairman and CEO of TotalEnergies, said the flagship project demonstrates that LNG production can be very low carbon, contributing to making 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,' he said.
Salim bin Nasser Al Aufi, Oman's Minister of Energy and Minerals, reiterated the ministry's steadfast commitment to supporting downstream energy projects as a vital pillar of economic integration across the industrial, trade, port, and logistics sectors.
'The Marsa LNG project, a strategic collaboration project between OQ Exploration & Production and TotalEnergies, embodies this commitment by developing advanced infrastructure for supplying vessels with LNG as an alternative clean fuel,' he said.
Ahmed Al Azkawi, CEO of OQEP, said the Marsa LNG project represents a solid 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,' he said.
A charter contract for a new LNG bunkering vessel has been signed by Marsa LNG LLC, the company said.
The vessel, currently under construction, will be stationed in Sohar from 2028, where it will supply LNG to a wide range of vessels such as container ships, tankers and large cruise ships, it said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Arabian Post
3 days ago
- Arabian Post
East African Crude Oil Pipeline Hits Key Milestone
The East African Crude Oil Pipeline , stretching 1,443 kilometres from Uganda to the Tanzanian port of Tanga, has passed the 60 percent completion mark, marking a significant step forward in one of Africa's largest infrastructure projects. This progress highlights the accelerating momentum in the development of critical energy infrastructure in the East African region, with implications for the economies and geopolitics of multiple countries. The pipeline, designed to transport up to 216,000 barrels of crude oil per day from the oil fields in Uganda's Lake Albert region to the Indian Ocean coast in Tanzania, aims to bolster export capacity and drive regional economic growth. It is being developed by a consortium led by the French oil giant TotalEnergies and China National Offshore Oil Corporation , alongside the governments of Uganda and Tanzania. The project is expected to be operational by 2025, facilitating Uganda's first significant oil exports and enhancing Tanzania's position as a regional energy hub. Reports from the Tanzanian construction sites indicate steady progress on various segments of the pipeline. Significant advancements have been made on the laying of pipes through diverse terrains including wetlands, forests, and agricultural lands. The project faces ongoing challenges due to the difficult environmental conditions and the need to balance ecological preservation with development objectives. However, the construction teams have implemented numerous mitigation strategies to reduce environmental impact, including careful route planning and community engagement efforts. ADVERTISEMENT Beyond the engineering and logistical achievements, the EACOP project has attracted considerable attention from environmental groups and local communities. Concerns over potential oil spills and long-term environmental degradation have been raised, particularly given the pipeline's passage through sensitive ecosystems such as the Lake Victoria basin and the Kazinga Channel. Environmentalists have urged the companies and governments involved to uphold rigorous safety standards and transparency to safeguard biodiversity and water resources. On the economic front, the pipeline is expected to create thousands of jobs across Uganda and Tanzania during construction and operation phases. Both governments project increased revenues from oil exports, which could translate into enhanced public services and infrastructure development. The project is also seen as a driver for regional integration, potentially strengthening trade ties within the East African Community through improved energy connectivity. Internationally, the EACOP project positions East Africa as a growing player in the global oil market. The completion of this pipeline will diversify crude oil supply routes and reduce reliance on pipelines running through unstable regions, such as those traversing Sudan or South Sudan. This could have broader implications for energy security in the region and beyond, influencing investment flows and geopolitical alignments. Technical reports indicate that the pipeline's infrastructure includes advanced safety features, such as leak detection systems and automated shut-off valves, which are essential in mitigating risks associated with large-scale oil transportation. The project consortium has committed to adhering to international standards throughout the construction and operational phases, a commitment that will be closely monitored by independent auditors and regulatory authorities. The financing of the EACOP pipeline reflects a mix of public and private investment, with considerable involvement from international financial institutions and development banks. This diversified funding approach aims to ensure the project's sustainability and financial viability while aligning with global best practices on transparency and governance. Despite fluctuations in global oil prices and increasing pressure for greener energy alternatives, the pipeline continues to attract financial backing due to its strategic importance. ADVERTISEMENT Local communities along the pipeline route have experienced both benefits and challenges. Job opportunities and infrastructure improvements have contributed positively to many areas, but there have also been disputes over land acquisition and compensation. Authorities from Uganda and Tanzania have been engaged in ongoing dialogues with community representatives to address grievances and ensure fair treatment for affected populations. The pipeline is expected to play a transformative role in Uganda's oil sector, allowing the landlocked country to export crude directly to global markets. This is a vital step in unlocking the commercial potential of Uganda's oil reserves, which were discovered over the past two decades but remained largely untapped due to logistical hurdles. With the pipeline nearing completion, Uganda's oil production is poised to increase significantly, potentially altering the country's economic landscape. For Tanzania, the pipeline's terminus at the port of Tanga offers prospects for expanding the country's industrial base, including refining and petrochemical industries. The project complements Tanzania's ambitions to become a regional energy corridor, benefiting from both oil exports and transit fees. The government has indicated plans to develop ancillary infrastructure, such as storage facilities and transportation networks, further integrating energy supply chains. Critics caution that the project must carefully navigate the evolving global energy transition. With increasing commitments from many countries and corporations to reduce carbon emissions and shift toward renewable energy sources, the long-term viability of new oil infrastructure faces scrutiny. Balancing economic growth from oil revenues with environmental sustainability and climate goals remains a complex challenge for the EACOP consortium and East African governments. The pipeline's construction also intersects with broader regional security concerns. Ensuring the pipeline's protection from sabotage, theft, and other security threats is paramount, given its economic significance. Governments have invested in coordination efforts among security agencies to safeguard the infrastructure, which spans multiple jurisdictions and sensitive areas.
Zawya
4 days ago
- Zawya
Qatar records budget deficit of $133mln in first quarter
DUBAI - Qatar recorded a budget deficit of 0.5 billion riyals ($133.31 million) in the first quarter of 2025, which was covered through debt instruments, the finance ministry said on Tuesday. Total revenue in the quarter stood at 49.4 billion riyals, down 7.5% from the same quarter last year. Non-oil revenue accounted for 6.9 billion riyals of total revenue. Government spending fell around 2.8% year-on-year to 49.94 billion riyals. Qatar, which is among the world's biggest exporters of liquefied natural gas (LNG), has stepped up efforts to diversify its economy away from hydrocarbons but remains reliant on gas revenue for the majority of government income. ($1 = 3.7506 riyals) (Reporting by Jana Choukeir; Editing by Andrew Heavens and Rachna Uppal)
The National
4 days ago
- The National
Abu Dhabi's XRG targets LNG and gas capacity of up to 25m tonnes a year by 2035
Adnoc's global energy investment arm XRG aims to have a gas and LNG business with capacity of between 20 to 25 million tonnes per annum by 2035 as it looks to scale up its operations globally. XRG's board, which includes Adnoc group managing director and chief executive Dr Sultan Al Jaber, former BP chief executive Bernard Looney and Blackstone's Jon Gray, approved a five-year business plan for the company on Monday. 'XRG is investing in the energy systems of the future – more integrated, more resilient, and responsive to global demand,' Dr Al Jaber, who is also the executive chairman of XRG, said. 'We are scaling platforms in gas, chemicals and energy solutions to drive long-term value and ensure energy remains a catalyst for sustainable growth and development.' XRG was launched last year as an international lower-carbon energy and chemicals investment company, with an enterprise value exceeding $80 billion. In December, President Sheikh Mohamed endorsed the appointment of the board of directors for the new unit. Other members of the board include Mohamed Alsuwaidi, UAE Minister of Investment and managing director and chief executive of Abu Dhabi's holding company ADQ, and Nassef Sawiris, the executive chair of OCI Global. The board 'supported the assessment of potential upstream gas M&A and LNG opportunities to strengthen its North American gas position", the statement said. Last month, the UAE made an announcement to increase the value of its investments in the US energy sector to $440 billion by 2035, from the current $70 billion, during US President Donald Trump's visit to the Gulf countries. That is part of the UAE's plan to invest $1.4 trillion in the country. XRG bought a stake in NextDecade's Rio Grande liquefied natural gas export facility in Texas last year along with other acquisitions in Mozambique and Turkmenistan. The board also endorsed the 'company's ambition to create a top-three global chemicals platform", the statement said. 'Subject to respective regulatory approvals, the proposed formation of Borouge Group International and the proposed acquisition of Covestro anchors an industry-leading portfolio across polyolefins, performance materials, and future speciality segments.' In December, XRG announced the acquisition of the German chemicals company Covestro for an enterprise value of €14.7 billion ($15.3 billion). In March, Adnoc also agreed to terms of a binding agreement with Austria's OMV to merge their polyolefins business and create a $60 billion Borouge Group International. The board also directed XRG through its Energy Solutions platform to expand its investments across the energy value chain "while continuing to develop select opportunities in carbon capture and storage and low-carbon fuels such as biofuels and low-carbon hydrogen that align with attractive return profiles". That comes amid growth in AI-linked power demand, particularly in the US, the statement added.
