Oman LNG and TotalEnergies, one of its shareholders, have signed a sale and purchase agreement to supply 800,000 metric tons per year of liquefied natural gas, the companies said on Monday.

TotalEnergies, which owns 5.54% of Oman LNG, will be supplied by the company for 10 years from 2025, they said in separate statements.

Oman LNG last week signed an agreement with Turkey's state gas grid operator Botas to supply about 1 million tons per annum (mtpa) of LNG for 10 years from 2025. It also signed a 10-year deal with Shell to supply 1.6 mtpa from 2025.

Founded in 1994 after the discovery of significant gas reserves, Oman LNG is 51% owned by the Omani government, 30% by Shell, 5% by Korea LNG, 2.77% each by Japan's Mitsubishi Corporation and Mitsui & Co, 2% by Thailand's PTTEP and 0.92% by Itochu Corporation. The company has production capacity of 10.4 mtpa.

The sale and purchase agreement with TotalEnergies finalises a deal announced in October for Oman LNG to extend supplies to shareholders including Shell and TotalEnergies for up to 10 years beyond 2024.

TotalEnegies has also made a final investment decision (FID) for Oman's Marsa LNG project, the French oil major said.

The project will be run by a joint venture named Marsa Liquefied Natural Gas. The business is 80% owned by TotalEnergies, with the rest held by Oman state oil company OQ.

The project includes 150 million cubic feet of natural gas per day, coming from the venture's 33.19% stake in the Mabrouk North-East field on onshore Block 10, which will provide feedstock for the Marsa LNG plant. The block began production in January 2023 and reached plateu this month.

"The FID allows Marsa LNG to extend its rights in Block 10 until its term in 2050," TotalEnergies said.

The project also includes building an LNG liquefaction plant at Sohar port, with a capacity of 1 mtpa. Production is expected to start by the first quarter of 2028, mainly to serve the marine fuel market. A solar plant will also be built to fully cover the plant's power consumption.

TotalEnergies and OQ are at "an advanced stage of discussions to jointly develop a portfolio of up to 800 MW, including the 300 MW solar project that will supply Marsa LNG", TotalEnergies said.

(Reporting by Yousef Saba; Editing by David Goodman)