JULY 17, 2023
Oman witnesses significant growth in LNG exports, expands trade partnerships
The Sultanate of Oman has emerged as a prominent player in the global liquefied natural gas (LNG) market, with a remarkable surge in exports and the expansion of trade partnerships. According to the recently published International Gas Union’s World LNG Report, Oman experienced an impressive 11.3 per cent incremental increase in LNG exports by market in 2022, compared to the previous year.
Despite facing outages and upstream supply disruptions, Oman achieved higher-than-average utilisation rates in 2022, with a total LNG export volume of 10.4 million tonnes (MT).
This resilience and ability to maintain high utilisation rates amidst challenges demonstrate the country’s commitment to meeting global LNG demand and its robust infrastructure capabilities.
Oman’s operational liquefaction capacity, as of the end of April 2023, stands at 10.4 million tonnes per annum (MTPA). This signifies the country’s continued efforts to expand its LNG production capabilities, ensuring a reliable supply of LNG to meet growing market demands.
The report highlights Oman’s growing influence in the LNG sector, as it solidifies its position as a key supplier in the global energy market. This substantial growth in exports underscores the country’s commitment to harnessing its abundant natural gas reserves and capitalising on the increasing demand for cleaner energy sources.
Oman’s LNG trade volumes in 2022 were distributed across various markets, with China and India leading the way as the primary trading partners for carbon-offset cargoes from 2019 to 2022. Last year, Oman exported 1.72 million tonnes (MT) of LNG to China and India.
Additionally, the country supplied 8.25 MT to other countries in the Asia Pacific region most notably Japan (2.69 MT), South Korea (4.57 MT), Chinese Taipei (0.34 MT) and Thailand (0.65 MT), demonstrating its expanding presence in this dynamic market.
Furthermore, Oman’s LNG exports reached 0.70 MT to Europe, further diversifying its customer base and penetrating new markets including France, Spain, Turkey, Italy and Greece.
The country also exported 0.08 MT to Brazil and 0.12 MT to Puerto Rico, indicating its growing reach in these regions. In 2022, it also exported 0.14 MT to Kuwait.
The surge in Oman’s LNG exports can be attributed to several factors.
Firstly, the country’s strategic geographic location provides it with a competitive advantage, facilitating efficient transportation and delivery of LNG to various destinations. Additionally, Oman has made significant investments in its LNG infrastructure, including liquefaction facilities and export terminals, enabling it to meet the growing demand for LNG worldwide.
Moreover, Oman’s commitment to environmental sustainability and carbon offset initiatives has resonated with global buyers. Carbon-offset cargoes have played a pivotal role in expanding Oman’s LNG trade partnerships, particularly with China and India.
These countries, along with other emerging economies, have been actively seeking cleaner energy options to reduce their carbon footprints and meet their sustainability goals.
Oman’s success in the LNG market has not only benefited its economy but has also contributed to the global energy transition.
LNG, being a cleaner alternative to coal and oil, helps reduce greenhouse gas emissions and promotes a more sustainable energy mix. By increasing its LNG exports, Oman is playing a vital role in supporting the global energy transition and meeting the rising demand for cleaner energy sources Looking ahead, Oman is well-positioned to continue its growth trajectory in the LNG market.
The country’s ongoing investments in LNG infrastructure and exploration of new gas fields will further enhance its production capabilities.
Furthermore, by strengthening its trade relationships with existing partners and forging new partnerships, Oman can ensure a stable and prosperous future in the LNG industry.