Oman LNG signs a nine-year-long LNG supply agreement with BP

Oman LNG signs a supply deal with the British energy firm BP. The company signs a nine-year-long agreement under the terms of an LNG sale and purchase agreement (SPA), according to which the company will supply around 1 MTPA of LNG to BP. According to the agreement, the company is looking forward to beginning the supply routine in 2026 for the next nine years.

Request Access To The Latest Price Trends of LNG

The deals signed before between the two oil and gas majors were structured on a free-on-board basis. While addressing the agenda, Oman LNG’s CEO mentioned that the sale and purchase agreement with BP is expected to unlock new opportunities to leverage Oman’s global presence in the global energy trade. The expected revenues acquired from the business will support the national economy and other energy transitions that will contribute towards cleaner energy.

Earlier in August this year, Oman LNG, which is a joint Venture (JV) owned by the national government, signed multiple LNG supply deals with some of the leading oil and gas majors, including Securing Energy for Europe (SEFE), Shell, and OQ Trading. It has agreed on the terms to supply around 0.4 MTPA of LNG to SEFE for four years, starting from 2026. Moreover, it has also signed a deal with Shell International Trading Middle East to supply around 0.8 MTPA of LNG for the next ten years. OQ trading expects to receive around 0.75 MTPA of LNG from Oman LNG in 2026 for the next four years.

Read More About LNG Production Cost Reports - Get Free Sample Copy in PDF

A firm shareholder, TotalEnergies, has agreed on a deal with Shell separately to extend their partnership in the Joint Venture. Some supermajors now a part of the JV include Korea LNG, Mitsubishi, Mitsui and Itochu, and PTTEP.

According to Procurement Resource, Oman LNG has signed a nine-year LNG supply deal with the UK-based oil and gas supermajor BP. The company will supply over one MTPA of LNG per year starting in 2026. Oman LNG expects to leverage its global presence through this agreement while focusing on ways to amplify the national economy and pragmatically support the energy transition.