The Ministry of Energy and Minerals of Oman and Shell Oman have signed a Letter of Intent to investigate the potential use of Liquified Synthetic Gas (LSG) in Oman.
Renewable hydrogen is coupled with carbon dioxide that has been captured to create natural gas, which is then liquefied to create LSG. According to Walid Hadi, Senior Vice President, Country Chair, Shell Oman, this low-carbon gas may be immediately fed to existing gas networks and infrastructure, including LNG plants like Oman LNG, all the way to the point of use.
In a separate transaction, Shell Oman acquired a 35 percent ownership in Green Energy Oman (GEO), the partnership that is building the biggest renewable green hydrogen project in the nation in the Omani governorates of Al Wusta and Dhofar. From up to 25 gigawatts of solar and wind energy, hydrogen will be created.
OQ (via its subsidiary Oman Energy Development), InterContinental Energy, EnerTech Holding Company, KSCC, and Golden Wellspring Wealth for Trading are further participants in this consortium. Worley is helping with the project’s concept feasibility study.
A long-term LNG offtake arrangement is covered by the third agreement. For the procurement of 0.8 million metric tons per year of liquefied natural gas (LNG) for a period of ten years, beginning in 2025, Shell Oman and Oman LNG have signed a term sheet.