PHOTO
LNG vessel at the jetty of Oman LNG in Sur. Image courtesy: Shell Image used for illustration
Oman-listed OQ Exploration and Production (OQEP) has issued a parent company guarantee (PCG) for the Marsa LNG bunkering terminal at Sohar Port.
OQEP is the upstream oil and gas business of state-owned energy company OQ Group.
The $24 million PCG will reduce to $4 million over 10 years, OQEP said in a statement published on the Muscat Stock Exchange on Tuesday.
The Marsa LNG is being jointly developed by TotalEnergies (80 percent) and OQ Group (20 percent), and is intended to be one of the lowest greenhouse gases (GHG) intensity LNG plants ever built worldwide. On Monday, Netherlands-based dredging company Boskalis had announced thje start of dredging work for as the Marsa LNGproject.
In September 2024, OQ said the construction of the LNG plant would be financed through a subordinated loan from the JV partners and a drawdown under a $500 million bank loan provided to Marsa by a consortium of Omani, regional and international banks.
In April 2024, the JV awarded an Engineering, Procurement and Construction (EPC) contract to Technip Energies, covering a natural gas liquefaction train with an LNG production capacity of 1 million tonnes annually.
(Writing by P Deol; Editing by Anoop Menon)
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