Overview
The commencement of liquefied natural gas exports from the Qalhat LNG facility in 2000 represented a transformative milestone in Oman’s energy sector. The project diversified hydrocarbon revenues beyond crude oil, established the Sultanate as a significant player in global gas markets, and demonstrated the country’s capacity to execute large-scale industrial projects in partnership with international energy companies. LNG exports quickly became a major contributor to government revenues and foreign-exchange earnings.
Key Points
The Oman LNG project, a joint venture involving the government and international oil companies, required investment of several billion dollars in gas processing, liquefaction, and export terminal infrastructure. Long-term supply contracts with buyers in East Asia provided revenue certainty and underpinned project financing. The project created thousands of direct and indirect jobs and stimulated the development of supporting industries. A second phase, Qalhat LNG, expanded capacity further, cementing Oman’s position in the global LNG market.
Current Status
Oman LNG continues to operate as a major export facility, with cargoes shipped to markets across Asia and beyond. The project has generated substantial cumulative revenues for the government and shareholders. Gas production has been supported by field development in the Khazzan and other tight-gas reservoirs. The experience gained from LNG development has informed subsequent gas-related projects including petrochemicals and gas-to-liquids initiatives.
Vision 2040 Context
Gas remains a strategic transitional fuel within Vision 2040’s energy framework. LNG export revenues provide fiscal resources for diversification investments, while domestic gas supports industrialisation and power generation. As the world transitions to lower-carbon energy, Oman’s gas infrastructure positions it to remain a relevant energy supplier while pursuing green hydrogen and renewable energy development.