Oman LNG to boost output from trains 1 and 2

18 October 2002

Oman LNGis planning to increase its output of liquefied natural gas (LNG) from trains 1 and 2 at its Qalhat facility in Sur. The company's board of directors approved in early October plans to debottleneck the plant's two trains. The project will increase output by 10 per cent to 7.2 million tonnes a year (t/y) of LNG. A tender for the front-end engineering and design (FEED) package is due out before the end of the year.

The company is also expected to take an equity stake alongside the government and Spain's Union Fenosain the construction of a third LNG train that will share the existing export terminal at Qalhat. The project will add a further 3.2 million t/y to the existing plant's output. Work on train 3 is expected to start in the first quarter of 2003. Both projects will give Oman a total output of 10.4 million t/y of LNG (MEED 4:10:02; 27:9:02).

No details have been given on the destination of the additional LNG from the debottlenecking project. Most of Oman LNG's existing output is sold into the Asian market. The company has long-term offtake agreements in place for 4.1 million t/y to Korea Gas Corporationand 700,000 t/y to Japan's Osaka Gas Company. Most of the excess 1.6 million t/y of gas that was intended for delivery to India's Dabhol Power Companyhas been sold on the European spot market (MEED 26:7:02, Cover Story).

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