Oman LNG has announced the signing of a binding term-sheet agreement with SEFE Secure Energy for Europe, (SEFE) to supply 0.4 million metric tonne per annum (mtpa) of LNG starting from 2026.
The agreement comes to enhance the ever-growing partnership between Oman LNG and international energy firms, where SEFE has become the latest beneficiary of Omani LNG marking the first LNG term deal with a German firm, a remarkable milestone for both countries opening doors for new opportunities in the European markets.
The signed term-sheet agreement encapsulates supplying a total volume of 0.4 million metric tonne per annum of LNG from Oman LNG to SEFE. The agreement is based on a 4-year contract, starting in 2026. Signing term-sheet agreements beyond 2024 emphasises Oman LNG's role in sustaining the Sultanate of Oman's reputation as a reliable and trusted LNG supplier, coupled with the effective management of business processes to produce reliable energy, and deliver it to customers around the world safely.
The agreement was signed by Hamed Al Naamany, CEO of Oman LNG, and Dr. Egbert Laege, Chief Executive Officer SEFE, in the presence of HE Eng. Salim bin Nasser al Aufi, Minister of Energy and Minerals, and HE Thomas Friedrich Schneider, Ambassador of the Federal Republic of Germany to the Sultanate of Oman.
Speaking after the signing ceremony, Mahmoud Al-Baloushi, Chief Commercial Officer, said "The term-sheet signing with SEFE marks another milestone, where the Omani LNG will be accessing new market through Germany, and beyond. Going further, the agreement leverages our constant efforts to add value to Oman's economy through growth and collaborations, especially as we see Oman tapping further on Germany's technologies and market, more broadly, thus creating a win-win for both".
"We are delighted to announce the historic contract signing between SEFE and Oman LNG, marking a significant milestone for both entities. As pioneers among German companies to embark on this partnership, SEFE is proud to lead the way towards enhanced collaboration. The partnership with Oman LNG diversifies SEFE's portfolio and reinforces our efforts to continue to reliably supply Europe with energy," said Dr. Egbert Laege, CEO of SEFE.
Oman's liquefied natural gas industry dovetails with the vision of the late Sultan Qaboos bin Said to diversify the country's economy and has attracted high revenue by harnessing natural gas resources for export as liquefied natural gas. The country produced its first shipment of Liquefied Natural Gas in 2000 after the first of an initial two-train plant began operations under Oman LNG, established by Royal Decree in 1994. With a third train under Qalhat LNG, liquefied natural gas has played an even greater role in contributing to the national economy as the two companies, that integrated in 2013 and now operate as Oman LNG, have worked intensely with outstanding success to drive their organisations forward.