TotalEnergies pushes Oman LNG project forward

07 July 2023
The French energy company-led Marsa LNG has asked contractors to prepare revised proposals for the project, with EPC contract awards expected to take place later this year

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French energy company TotalEnergies is progressing with its planned project to build a major liquefied natural gas (LNG) bunkering and export terminal in Oman’s northern city of Sohar.

TotalEnergies is leading a joint venture named Marsa LNG, which is the Sohar LNG terminal project developer.

Marsa LNG was formed in December 2021 through an agreement between TotalEnergies and the sultanate’s state energy holding company OQ, with the partners owning 80 per cent and 20 per cent stakes, respectively.

Marsa LNG intends to develop an integrated facility consisting of upstream units that will draw natural gas feedstock from TotalEnergies’ hydrocarbon concessions in the sultanate, particularly from Blocks 10 and 11; an LNG bunkering terminal and storage units located in Sohar port; and a solar photovoltaic (PV) plant to power the LNG terminal.

The Marsa LNG terminal will have a single train with the capacity to process about 1 million tonnes a year (t/y) of natural gas into LNG. The bunkering terminal is envisaged to mainly supply LNG as a marine fuel to vessels.

According to sources, TotalEnergies recently asked contractors participating in the Marsa LNG terminal project’s feed-to-EPC competition to submit revised proposals for the front-end engineering and design (feed) based on the changes it has made to the scheme's scope.

Feed-to-EPC contest

The feed-to-EPC model involves shortlisted contractors preparing feed proposals for the project. The project owner then evaluates those feed submissions, and awards the firm with the most competitive and efficient feed proposal the contract to perform the project’s engineering, procurement and construction (EPC) works.

TotalEnergies started the feed-to-EPC contest for the Marsa LNG project in May 2019. The following three contractors were selected:

  • JGC Corporation (Japan)
  • McDermott (US)
  • Technip Energies (France)

Contractors are “updating their feed proposals for Marsa LNG, based on the new requirements of the project”, one source told MEED, adding that revised feed bids are due to be submitted during the “third quarter”.

The joint venture is expected to take the final investment decision (FID) on the project following the evaluation of the “new [engineering] design proposals received from the contractors”, another source said.

The project operator had been on course to reach FID on the project by the end of last year, MEED previously reported.

Sources now expect TotalEnergies and OQ to achieve FID and award the EPC contract for the planned Marsa LNG terminal by the end of 2023. EPC works will then commence in the first quarter of 2024.

Project scope of work

The scope of work on the Marsa LNG project is broadly categorised into the following four segments:

  • Process structures – Gas inlet station unit, liquefaction unit and refrigerant storage unit (if applicable)
  • Utilities: Import power from national grid, fuel gas system, air cooling system, steam system, instrument and plant air systems, nitrogen recovery unit and fire water system
  • Offsite and common facilities: Flare, vent, relief and blowdown, LNG storage and loading unit, LNG rundown line, LNG bunkering facilities, boil off-gas handling
  • Support buildings: Control building, main administration building, LNG laboratory, warehouse, workshops, among others

MEED has previously reported that the key changes TotalEnergies has made to the Marsa LNG project include shifting the site at least 1 kilometre closer to the Port of Sohar facility. This will “enable easy and seamless refuelling and export activities”, according to one source.

Another alteration introduced building a solar PV farm to generate clean power to primarily run the LNG bunkering terminal.

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