Oman Natural Gas Company and Spanish Company "Naturgy" Sign MoU for Supply of One Million Tons of Gas Annually

SadaNews - The Oman Liquefied Natural Gas Company and the Spanish company "Naturgy" have signed a Memorandum of Understanding (MoU) that includes a study for supplying up to one million tons of liquefied gas annually for a period of 10 years starting from 2030, according to a statement published by Oman News Agency today.

The two companies are also looking to jointly invest in building a vessel for transporting liquefied gas in collaboration with "Asyad" shipping company, and to buy shipments of liquefied gas from "Naturgy"; to continue meeting the needs of the European market, and to explore opportunities to access European regasification terminals and associated gas pipelines to enhance the import of liquefied gas and subsequent sales operations.

"OQ Exploration and Production" in Oman is in talks with partners, including "BP", to increase natural gas production from one of its largest fields, aiming to supply the new export plant.

The war between Russia and Ukraine has affected the supply of liquefied gas to Europe, and European countries, including Spain, have adopted alternatives to Russian gas, signing long-term agreements with Gulf states to provide sufficient amounts of liquefied gas.

Although liquefied natural gas still holds a lower significance than oil within the global energy system, it is experiencing faster growth and more sustainable demand thanks to its role as a transitional fuel supporting renewable energy sources.

Supplying Ships with Green Methanol

The MoUs signed during Sultan Haitham bin Tariq's visit to Spain included three other agreements in the fields of green methanol, water management, and sewage, as part of strengthening economic cooperation and developing trade and investment relations between the two countries.

The agreements also involved cooperation between the Omani Ministry of Transport, Communications and Information Technology, and a coalition of international companies consisting of: "HAVEIMIA", "Axonia Nordix for Green Hydrogen", and "Al-Mira Investment", aiming to explore and develop a project for producing and supplying ships with low-carbon green methanol in Dhofar Governorate, thereby enhancing the achievement of carbon neutrality and making the governorate a center for green fuel and ship fueling in the Middle East.