French energy major TotalEnergies and Oman's state-owned oil company OQ have joined forces to construct the Middle East's first liquefied natural gas (LNG) bunkering hub. The project, dubbed Marsa LNG, signifies a significant development in the region's maritime fuel sector and ambitions for a cleaner shipping industry.
Standing at the forefront of the initiative, TotalEnergies will hold an 80% stake in the project, while OQ will contribute the remaining 20%. The lynchpin of Marsa LNG will be a 1 million-ton-per-year liquefaction plant situated strategically within the port of Sohar, Oman. This plant will be remarkable for its complete reliance on electric power, significantly reducing its greenhouse gas emissions footprint. To achieve this feat, the project incorporates a dedicated 300-megawatt solar power plant, ensuring a clean and sustainable source of energy for LNG production.
The focus of Marsa LNG lies in supplying LNG as a marine fuel. This alternative fuel source holds immense potential for curbing emissions generated by the shipping industry, a prominent contributor to global air pollution. By offering LNG as a viable bunkering option, the project paves the way for a greener maritime landscape in the Middle East.
The significance of Marsa LNG extends beyond its role as a bunkering hub. The project also encompasses upstream gas production, solidifying the project's self-sufficiency. Feedstock for the liquefaction plant will be sourced from the Mabrouk North-East field located within Block 10, where Marsa LNG holds a 33.19% stake. Production from this block commenced in January 2023 and has since reached its peak capacity.
Construction contracts for the crucial aspects of Marsa LNG have already been awarded. Technip Energies will be responsible for the engineering, procurement, and construction of the LNG plant, while CB&I will handle the construction of the LNG storage tank. With these key partnerships established, the project is well on its way to fruition, with LNG production expected to commence by the first quarter of 2028.
The collaboration between TotalEnergies and OQ on Marsa LNG represents a strategic move for both companies. TotalEnergies strengthens its foothold in the Middle Eastern energy market while showcasing its commitment to sustainable LNG production. For OQ, the project unlocks new avenues for gas monetization and positions Oman as a frontrunner in the emerging LNG bunkering market. Beyond these individual benefits, Marsa LNG serves as a beacon of innovation, paving the way for a cleaner and more sustainable future for the maritime industry in the region.