Oman Delivers Gas to China

Oman LNG has signed its first contract with a Chinese buyer, Unipec, for the delivery of 1 million tons of liquefied natural gas (LNG) over a four-year period.

​The deliveries are set to begin in 2025 and are part of Oman LNG's strategy to reach new markets. Last month, the Omani company signed an agreement with Turkey's BOTAS for annual deliveries of 1.4 billion cubic meters of gas over ten years. The company also has deals with French TotalEnergies and Thai PTT, who will receive 800,000 tons of LNG annually starting in 2025 and 2026, respectively. Energy majors JERA, Mitsui & Co, and Itochu Corp are among the clients of Oman LNG and have recently signed contracts for a combined 2.35 million tons of LNG annually over 10 years starting in 2025.

Due to the growing popularity of natural gas as an energy source, gas production in Oman is expected to surpass oil production this year, as per Rystad Energy's forecast from four years ago. As competition for gas intensifies, producers such as Qatar, the US, and Australia are expanding their production, and even smaller producers like Oman are expanding to meet strong demand.

​China, with its large economy and industrial demands, is a target market for LNG producers. Although it lost the title of the world's top LNG importer to Japan last year, China remains a significant buyer of the commodity and is willing to enter into long-term contracts to secure supply and mitigate price fluctuations.