Turkey has signed a key liquefied natural gas purchase agreement with Oman for 1.4 billion cubic metres of annual gas imports for 10 years.
The long-term deal is between state-owned Oman LNG and Turkey’s Botas Petroleum Pipeline Corporation, with gas supplies expected to start in 2025, local media reports in Oman have claimed.
Oman LNG chief executive Hamed Al Naamany noted that its term-sheet agreement with Botas supports the company’s efforts to further develop its position in the global energy and LNG industry and explore new markets with key industry partners.
“This step complements our commitment to add value to the local economy through growth and collaborations with international partners such as Botas,” Naamany told local media.
Turkey’s Energy and Natural Resources Minister Fatih Donmez said the agreement also includes an opportunity to be extended.
“At a time when the world, especially Europe, is suffering from gas supply problems, Turkey is taking all steps to become a gas trade centre,” he said.
Oman LNG has signed multiple gas supply agreements with international players in recent months.
Earlier in January, Oman signed binding term-sheet agreements with Thailand’s PTT Global LNG and with French giant TotalEnergies to supply a total of 1.6 million tonnes per annum of LNG starting in 2025.
In December, a group of three Japanese companies signed long-term LNG import deals with Oman LNG for 2.35 million tpa of gas supplies.
Oman LNG is a joint venture company with the government of Oman holding a majority stake of 51% and UK supermajor Shell holding a 30% interest.
Other key stakeholders include TotalEnergies, Korea LNG, Mitsubishi Corporation, Mitsui & Co, PTTEP and Itochu.
The Sultanate of Oman has significantly boosted its gas production over the years, led by BP’s Khazzan and Ghazeer tight gas projects, with output averaging more than 120,000 million cubic metres per day last year.