Oman’s plans for its next liquefied natural gas (LNG) facility depend on securing private investments from leading global energy companies, according to a Bloomberg report.
With an economy heavily reliant on oil and gas, expanding LNG exports could strengthen Oman’s financial position. However, the government has ruled out state funding for future projects, emphasizing the need for financial self-sufficiency.
The Ministry of Energy and Minerals will begin discussions in the first quarter of next year with major gas producers operating in Oman, including BP Plc, Shell Plc, and TotalEnergies SE, Energy Minister Salim Al-Aufi stated in an interview.
“If we cannot secure enough gas suppliers, the project will be canceled,” Al-Aufi warned. “The key is to obtain the gas feedstock for the fourth train without government intervention. If that cannot be achieved, the project will not proceed.”
Oman’s public finances have historically been among the weakest in the Gulf region. Since taking office in January 2020, Sultan Haitham bin Tariq has introduced reforms to stabilize the economy, which suffered during the pandemic. These measures have improved the country’s credit rating in recent years.
Currently, the Omani government holds majority stakes in the nation’s three LNG facilities, with international oil companies and gas buyers as minority stakeholders. However, only gas producers capable of committing supplies to the new facility will be considered for equity stakes in the fourth LNG train.
“Gas producers who see LNG as a monetization opportunity are welcome to discuss participation,” Al-Aufi noted. “But without gas equity, there is no room for talks at this stage.”
The proposed facility, which is undergoing a feasibility study, would have an annual capacity of 3.8 million tons and be located near Oman’s existing LNG plants in Qalhat. If completed, it would increase the nation’s total LNG capacity to 15.2 million tons per year.
Oman is currently the second-largest LNG exporter in the Middle East, although its output remains significantly smaller than Qatar’s, the regional leader.
