Oman LNG signs sale-and-purchase agreement with BP to deliver gas

Muscat, Oman–Oman LNG has entered into a sale-and-purchase agreement (SPA) with BP to deliver a total of 1 million metric tonnes per annum (MTPA) of LNG to BP.

The agreement strengthens the robust relationship between Oman LNG and BP, with which the company has previously signed SPAs to supply reliable energy from the Sultanate of Oman.

Spanning over 9 years, the agreement is Free-on-Board (FOB) and starts in 2026, Oman News Agency reported.

Oman LNG is in a shape shifting position that sustains energy systems, fosters economic growth, and secures our position as a reliable energy supplier.

The agreement’s terms are strengthened by the company’s worldwide reputation as a reliable and trusted LNG supplier, where it intends that LNG contributes to global energy security and adds value to the local economy.

Oman LNG signed a partnership agreement in August with the German company Securing Energy for Europe to supply 0.4 million tons of LNG per annum. The four-year contract, which will see Oman LNG beginning the supply in 2026, is part of the firm’s strategy to tap new opportunities in the European energy markets.     

The company at the start of this year agreed to supply up to 1.6 million tons of LNG to France’s TotalEnergies and the Thai state-owned firm Petroleum Authority of Thailand.     

The deal will see TotalEnergies and PTT each receive 800,000 tons of LNG annually. While the French firm struck a 10-year agreement beginning in 2025, the Thai company agreed on a nine-year contract from 2026.

Oman has emerged as one of the leading players in the global LNG market, with an operational capacity totaling 10.4 million tons per annum as of April 2023, according to the International Gas Union’s World LNG Report.