Groundbreaking ceremony held for Marsa LNG project worth $1.6bn in Sohar

Times of Oman

01-05-2025

Sohar: The groundbreaking ceremony for the Marsa LNG project took place on Thursday 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%.
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'sstrategic 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, 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, a strategic partnership between OQ Exploration and Production and TotalEnergies, embodies this vision through the development of advanced infrastructure to supply ships with liquefied natural gas as a clean alternative fuel.'
He added, 'This project represents a major step forward in the transition toward 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 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.'
Eng. Ahmed Al Azkawi, CEO of OQEP, said, 'At OQEP, we are committed to advancing innovation and sustainability across Oman's energy sector. 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 undertake a pivotal role in reducing emissions in the shipping industry while reinforcing Oman's position as a key player in the global energy sector."
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 milliontonnes, supported by a 300-megawatt solar power plant to meet the facility's annual energy needs.
The Marsa LNG project include 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 200,000tonnesof 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 holds a 33.19 percent 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 GCC region. Notably, the Marsa LNG facility will be fully electrified and powered entirely by solar energy, positioning it among the lowest greenhouse gas (GHG) intensity LNG plants globally, with emissions below 3 kg CO2e/boe, nearly 90 percent lower than the industry average of 35 kg CO2e/boe.
The full electrification of the LNG plant will lead to over 6 percent increase in net production, with 99 percent 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 percent 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 percent by 2030, in support of Oman Vision 2040.
Marsa LNG is set to be strategically located in Sohar 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 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 percent 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.