Definition
Oman LNG is the joint-venture company responsible for producing and exporting liquefied natural gas from the Sultanate of Oman. Established in 1994, the company operates a three-train LNG plant at Qalhat in the Sharqiyah South governorate, near the port city of Sur. LNG is natural gas that has been cooled to minus 162 degrees Celsius, converting it to liquid form for efficient shipping to distant markets. LNG is a vital component of Oman hydrocarbon export portfolio alongside crude oil.
Context in Oman
Oman LNG is owned by a consortium led by the Oman government (51 percent) with international partners including Shell, Total, Korea LNG, Partex, Mitsubishi, Mitsui, and Itochu. Qalhat LNG, which operates two additional trains at an adjacent facility, was merged into Oman LNG operations. The combined plant has a production capacity of approximately 10.4 million tonnes per annum. Oman LNG exports primarily to East Asia (Japan, South Korea, China) and occasionally to European and South Asian markets. Gas feedstock comes from fields in central and southern Oman via a cross-country pipeline. The company is one of the largest single contributors to government revenue outside crude oil.
Key Data Points
| Metric | Value |
|---|---|
| Established | 1994 |
| Plant location | Qalhat, Sur |
| Total LNG trains | 3 Oman LNG + 2 Qalhat LNG |
| Combined capacity | ~10.4 million tonnes/year |
| Government ownership | 51 % |
Vision 2040 Connection
While LNG is a hydrocarbon export, it generates lower carbon emissions than coal and oil, positioning Oman as a supplier of transition fuel during the global shift to renewables. Vision 2040 views LNG revenues as a critical funding source for diversification investments and expects LNG to remain a significant export earner through the 2030s and beyond.
Further Reading
- [[Oman Oil Production Explained]]
- [[What is Non-Oil GDP]]
- [[What is Fiscal Sustainability]]