French oil and gas company TotalEnergies and Sultanate of Oman’s national oil company OQ have reached the Final Investment Decision (FID) for the Marsa LNG project.

The FID reaffirms the long-term partnership between TotalEnergies and the Sultanate.

It was announced when TotalEnergies chairman and CEO Patrick Pouyanné met Oman’s Sultan Haitham bin Tariq Al Said and Minister of Energy and Minerals Salim bin Nasser Al Aufi.

TotalEnergies has signed an agreement with Oman LNG to offtake 0.8Mtpa of LNG for ten years from 2025, becoming one of the main offtakers of Oman LNG’s production.

In addition, TotalEnergies and OQ Alternative Energy are in deep talks to jointly develop a portfolio of up to 800MW, including the 300MWp solar project that will supply Marsa LNG.

The joint company, dubbed Marsa Liquefied Natural Gas, will launch the integrated Marsa LNG project, in which TotalEnergies will own 80% stake and OQ the remaining 20%.

TotalEnergies chairman and CEO Patrick Pouyanné said: “We are proud to open a new chapter in our history in the Sultanate of Oman with the launch of the Marsa LNG project, together with our partner OQ, demonstrating our long-term commitment to the country.

“We are especially pleased to deploy the two pillars of our transition strategy, LNG and renewables, and thus support the Sultanate on a new scale in the sustainable development of its energy resources.

“This very innovative project illustrates our pioneer spirit and showcases the relevance of our integrated multi-energy strategy, with the ambition of being a responsible player in the energy transition. By paving the way for the next generation of very low emission LNG plants, Marsa LNG is contributing to making gas a long-term transition energy.”

The LNG project combines 150 Mcf/d of natural gas, coming from the 33.19% interest held by Marsa in the Mabrouk North-East field on the onshore Block 10, to feed the LNG plant.

It includes the construction of a 1Mt/y capacity LNG liquefaction plant in the port of Sohar, which is expected to begin LNG production by the first quarter of 2028.

The LNG plant will primarily serve the marine fuel market (LNG bunkering) in the Gulf, and the LNG quantities not sold as bunker fuel will be off-taken by TotalEnergies and OQ.

Marsa LNG project will use 100% electricity supplied with solar power, where a 300MWp PV solar plant will be dedicated to power the LNG plant, reducing greenhouse gas emissions.

The solar power will position the site as one of the lowest GHG emissions intensity LNG plants ever built worldwide, with a GHG intensity below 3kg CO2e/boe.

Technip Energies has been awarded the major Engineering, Procurement and Construction (EPC) contracts for the LNG plant and CB&I for the 165,000m3 LNG tank.

Marsa LNG project is expected to generate long-term employment opportunities and significant socio-economic benefits for the city of Sohar and the region, said the French oil and gas firm.