Agreement imminent for third LNG train

28 March 2003
The shareholding structure of the company that will own and operate the third gas train at Sur is close to being finalised. Under the terms of the deal being negotiated, the government will take a 52 per cent stake in the company, Oman LNG40 per cent and Spain's Union Fenosa Gasthe remaining 8 per cent. A final joint venture agreement is expected to be signed by May (MEED 7:6:02).

Union Fenosa Gas, which is 50 per cent owned by Italy's Eni, has committed to take 50 per cent of the proposed third train's total output of 3.3 million tonnes a year (t/y) of liquefied natural gas (LNG). The train will be built adjacent to the existing Oman LNG plant (MEED 13:12:02). The Spanish utility has also entered into an interim deal with Oman LNG to take 1.3 million t/y of LNG until the third train's gas output becomes available in 2006 (MEED 26:11:02). The remaining LNG from the train is expected to be sold into Asian and North American markets.

A US-Japanese team of Chiyoda-Foster Wheeler & Companyhas the engineering, procurement and construction (EPC) contract for the project, which is expected to cost $600 million (MEED 17:1:03). Citbankis advising the government on the financing options for the scheme and a preliminary information memorandum is expected once the final shareholders' agreement has been signed.

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