Latest news with #MarsaLNG
Observer
5 days ago
- Business
- Observer
Oman's OQAE targets over 10 GW renewables by 2035
MUSCAT: OQ Alternative Energy (OQAE) – the clean energy arm of integrated Omani energy group OQ – has announced plans to develop over 10 gigawatts (GW) of renewable energy production capacity within a decade. It also aims to bring a portion of its green hydrogen production capacity online within this timeframe. According to Najla al Jamali, OQ Alternative Energy CEO, these goals are aligned with the company's decarbonisation and energy transition strategies, consistent with its mandate as Oman's national champion for clean-energy development. 'By 2035, I envision OQAE exceeding 10 GW in renewable energy production and becoming a regional leader, possibly expanding beyond Oman. I would like to see our hydrogen projects supplying both domestic and international markets. Ideally, we would minimise export dependencies by fostering local offtake,' Al Jamali said in an interview with The Energy Year, a London-based news portal. The rollout of this portfolio is already underway, with the recent launch of construction of three renewable energy projects – the Riyah 1 and Riyah 2 wind farms and the North Oman Solar project – with a combined capacity of around 300 MW, the output of which is contracted to Petroleum Development Oman (PDO), the country's largest oil and gas producer. In addition, OQAE is supporting another 300 MW solar farm to provide clean energy for the Marsa LNG bunkering project currently under construction at Sohar Port. In the interview, Al Jamali highlighted the critical role of international partnerships in delivering OQAE's ambitious clean energy agenda. These partners contribute not only equity but also advanced technology and operational expertise. Many of them – including oil and gas producers and hard-to-abate industries – are also prospective customers for OQAE's clean energy output as they pursue their own decarbonisation pathways. 'In clean energy, our customer base includes PDO, Marsa LNG, Oxy and OQ Exploration & Production (OQEP),' she noted. 'Our potential customers include oil and gas companies such as PDO, BP, Shell and Oxy, as well as industrial players like Vale, Jindal and Sohar Aluminium. Within OQ Group itself, we also look to serve the refinery and plants in Salalah.' Significantly, OQAE is expanding its role in solar and wind energy development aimed at meeting Oman's national renewable energy targets. Earlier this year, OQAE secured a commitment for a stake of up to 25 per cent in all future renewable energy projects procured by Nama Power and Water Procurement Company (PWP) – the sole procurer of new power and water capacity in Oman. This commitment encompasses all upcoming solar and wind projects (and potentially other forms of alternative energy as well), beginning with the Ibri III Solar PV project, a 500 MW scheme slated for development in Al Dhahirah Governorate. 'As the national champion, we have rights in Nama Power and Water Procurement tenders. Three projects have already been floated. Ibri III has been awarded, while the Jaalan Bani Bu Ali and Dhofar Wind 2 projects are progressing. Nama Power and Water Procurement has also allocated around 1 GW of wind capacity to us, with some sites already identified and others pending selection,' Al Jamali explained. On the progress of OQAE's green hydrogen ventures, the CEO stated: 'We expect our hydrogen projects to advance from around 2030 onward, with some developments extending into the following decade.' She added: 'Our Hyport project features a 500 MW electrolyser. Green Energy Oman and Salalah H2 each represents around 2 GW. Collectively, these three legacy projects are expected to deliver approximately 400 kilotonnes per year. We believe they are among the most advanced in the region, having gathered wind data and progressed to the pre-FEED stage.'
Observer
04-07-2025
- Business
- Observer
Fitch affirms OQ at ‘BB+', outlook positive
MUSCAT: International ratings agency Fitch Ratings has affirmed its long-term credit rating of OQ SAOC, Oman's fully state-owned integrated energy group, at 'BB+' with a Positive Outlook. The unchanged credit rating reflects OQ's robust strategic role in the national economy and its growing prominence in the country's green energy ambitions. According to Fitch, the rating mirrors OQ's continued close alignment with Oman's sovereign credit profile (also rated 'BB+' with a Positive Outlook), given its ownership by the Oman Investment Authority (OIA) and its central role in the country's oil, gas and renewable energy infrastructure. 'OQ accounts for a substantial portion of assets transferred to OIA from the Ministry of Finance in 2020. The government exercises strong influence over OQ's business and funding strategy through OIA. The state has no plans for the privatisation of OQ, but we expect the disposal of minority stakes in its subsidiaries, including core operating companies, to continue,' the ratings agency stated. OQ's Standalone Credit Profile (SCP) was assessed at 'bbb-', underscoring its low leverage, strong operational performance and a conservative financial policy. These strengths provide the company with sufficient financial flexibility to pursue expansion projects, even as its operations remain primarily concentrated in Oman, said Fitch. The ratings agency also referenced the successful IPO of two subsidiaries — OQ Exploration & Production (OQEP) and OQ Base Industries (OQBI) in 2024, which raised $2.5 billion. The proceeds helped significantly reduce OQ's debt by $1.7 billion, nearly wiping out net leverage. 'We expect leverage to gradually increase to about 1.5x by 2028 as the company invests in growth and Fitch-adjusted EBITDA normalises at about $2 billion on moderating oil prices and weaker refining margins. Major expansion initiatives are focused on the upstream business, including Marsa LNG project, the expansion of gas networks and decarbonisation,' Fitch stated. The agency also underlined the 'very strong' incentive for government support, highlighting OQ's status as a strategic state asset. The company operates all of Oman's domestic refining assets, manages the entire natural gas transportation infrastructure and is a key national developer of clean energy projects. This deep integration into Oman's critical infrastructure means a default by OQ would significantly impact the country's access to foreign financing — especially as the company is one of the largest non-sovereign borrowers in Oman, with a Fitch-adjusted gross debt of $7.7 billion at end-2024. A significant aspect of OQ's future growth is its green transition. Through its subsidiary, OQ Alternative Energy, the company has been designated as Oman's national champion for clean energy and green hydrogen development. Its pipeline now includes up to 7 GW of clean energy projects, with a first wave of five wind and two solar projects slated for tender in 2025. Substantial capital expenditures are expected over the next five years, especially following the final investment decisions on these clean energy initiatives. Capex is projected to average RO 600 million per year during 2025–2028.
Observer
19-06-2025
- Business
- Observer
‘LNG from Oman': Unified brand for Oman's LNG
MUSCAT, JUNE 19 With two more LNG projects currently under development and construction, the Sultanate is seeking to leverage this significant expansion of its LNG industry to build a new brand around the global sales of LNG from Oman. Stylised as 'LNG from Oman', this brand will encompass exports from Oman LNG's three-train complex at Qalhat, future production from the under-construction Marsa LNG bunkering project at Sohar Port, and the proposed fourth LNG train project, dubbed 'Sur LNG', which is currently under deliberation. According to Hamed al Naamany, CEO of Oman LNG, the branding initiative aims to capitalise on the strong foundations of trust, reliability, and flexibility that have characterised Oman's LNG exports over the past two decades. 'We're delivering 'LNG from Oman' because that is the brand the global market recognises and trusts,' Al Naamany said. 'This includes Sur LNG, our planned fourth train, and Marsa LNG in Sohar, a dedicated bunkering facility being built in partnership with TotalEnergies and our sister company OQ. Oman's market positioning is not about who operates the plant but the reliability and flexibility of the product from the country,' he added in an interview with The Energy Year (formerly The Oil & Gas Year). Elaborating on this point, Al Naamany described LNG from Oman as a brand offering a 'differentiated value proposition.' He explained: 'We work closely with different types of buyers – whether in Europe, Asia, or among portfolio players – to tailor commercial flexibility to their needs and ours. We are known as one of the most agile producers globally. We listen to our customers while meeting the expectations of our government. That dual responsiveness resulted in the successful signing of long-term agreements in record time.' Majority government-owned Oman LNG will play a pivotal role in this new brand positioning, the CEO noted. To this end, the company plans to build on its recent debottlenecking efforts, which enabled it to produce a record 12 million tonnes of LNG in 2024, surpassing its nameplate capacity of 11.4 million tonnes. This additional capacity, he added, has enhanced the company's ability to respond to spot-market demand and seasonal fluctuations. He further noted that nearly 85% of Oman LNG's volumes are now secured through term contracts ranging from three to ten years, offering a balance of stability and flexibility. Marsa LNG, meanwhile, will serve as a 'differentiator,' said Al Naamany. 'Marsa is the world's first purpose-built LNG bunkering facility. The location is fantastic, and we're all for it. Global shipping is shifting to LNG-fuelled vessels, and Oman sits on a key trade route. The government's decision to develop Marsa sends a powerful message: Oman will participate in every LNG market segment – power, transport, bunkering – as part of its growth and diversification agenda.' Also integral to the new branding is the Sur LNG project – a fourth train with a planned capacity of 3.8 million tonnes per annum, slated for launch by 2029, subject to a Final Investment Decision (FID). 'Sur LNG aims to be ready this year with a full proposal,' said Al Naamany. 'The final decision will rest with the government and the partners. The market clearly wants the product, and with a compelling value proposition, we could see delivery in less than four years from approval.' Feedstock for Oman LNG, Qalhat LNG and the proposed Sur LNG project is expected to come from a variety of sources, Al Naamany noted. 'We've always been flexible. When Khazzan came on line in 2018, we adapted. Our facilities at Oman LNG, Qalhat LNG, and Sur LNG are designed to process various gas compositions. We don't rely on specific fields; we adjust to what the government assigns. Our competitive edge lies in modifying plants cost-effectively while maintaining output.' Another pillar of Oman LNG's competitive edge in the global market is its 'commercial agility', he said, adding that the use of advanced optimisation tools – such as swapping, diverting, and re-trading – has contributed significantly to this strength. 'That's why energy traders and large portfolio players are partnering with us. We now have 14 Sales and Purchase Agreements (SPAs) with companies such as Botas, Shell, BP, TotalEnergies, Jera, Mitsui, Vitol, Mercuria, Kansai Electric Power, PTT, SEFE, OQT, and Sinopec, delivering volumes from 2025 to 2034. And there's more to come,' Al Naamany concluded.
ME Construction
16-05-2025
- Business
- ME Construction
BESIX secures Marine contract at Sohar Port and Freezone
Infrastructure BESIX secures Marine contract at Sohar Port and Freezone By The scope of work includes constructing a Liquefied Natural Gas (LNG) jetty, implementing shore protection measures, and developing an advanced drainage network BESIX recently secured an award for a marine infrastructure project at SOHAR Port and Freezone in Oman. The project award sees BESIX's return to the Omani market and marks the expansion of its regional activities beyond the UAE, Saudi Arabia, and Qatar. The project scope includes constructing a Liquefied Natural Gas (LNG) jetty, implementing shore protection measures, and developing an advanced drainage network. The contract will be executed by BESIX, leveraging its marine expertise and record in the Sultanate. The firm says it has completed various marine projects in the region, including the marine works at the Duqm refinery and Sultan Qaboos Port, the seawater intake system in Barka, and earlier developments at Sohar Port. Construction is scheduled to commence in summer 2025 and is expected to last 16 months. The new LNG jetty will be a crucial component of the infrastructure supporting the Marsa LNG project, which aims to be the Middle East's first fully solar-powered LNG bunkering hub. By facilitating the safe and efficient transfer of cleaner marine fuel, the jetty contributes significantly to the project's broader sustainability goals. Emile Hoogsteden, CEO, SOHAR Port said, 'Partnering with BESIX on this strategic development reinforces our commitment to advancing sustainable energy solutions in the region. The new LNG jetty is a cornerstone of the Marsa LNG project, and it exemplifies the kind of forward-thinking infrastructure that positions SOHAR as a leader in green maritime logistics.' Peter Lembrechts, General Manager, BESIX Middle East added, 'This contract represents the trusted collaboration we first established with Sohar Port years ago. We look forward to delivering this project with the same focus, reliability, and excellence that define BESIX across Oman and the Gulf.' BESIX has been delivering jetties worldwide for several decades. Their portfolio includes jetties such as the South Hook Terminal in the UK, Wheatstone LNG in Australia, LNG Kitimat in Canada, the LNG import terminal in Bahrain, and Ain Sokhna LNG in Egypt.
Yahoo
05-05-2025
- Business
- Yahoo
Oman pushes cleaner energy with green hydrogen and gas projects
Oman is increasing its bets on cleaner energy, with another green hydrogen auction round and a low-emission liquefied natural gas (LNG) bunkering project. The latest hydrogen auction is focused on Duqm, where 300 square km is available for solar and wind plants needed to produce the fuel. Formal bids are due early next year. It's big business: two previous rounds drew pledges of $49 billion to develop 30 gigawatts of renewable power and 1 million tons per year of hydrogen capacity. OQ Gas Networks is planning a national hydrogen pipeline network to support the projects. Further north, TotalEnergies and OQ Exploration and Production broke ground on the $1.6 billion Marsa LNG project. This will produce up to 1 million tons per year of fuel for ships and will be powered by a 300 megawatt solar plant, which the partners say will make it the world's lowest-emission LNG plant.
