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Shell Oman Signs Agreements for Syngas and LNG Offtake; Takes Stake in Green Hydrogen Project

Shell Oman Signs Agreements for Syngas and LNG Offtake; Takes Stake in Green Hydrogen Project

Covering Oman to take 35% risk in Environment-friendly Energy Oman

Shell Oman has signed a Letter of Intent with Oman’s Ministry of Power and Minerals to check out the implementation of Liquified Synthetic Gas (LSG) in Oman.

LSG is produced when renewable hydrogen is integrated with captured carbon dioxide to generate gas which is then melted. This low-carbon gas can be directly introduced to existing gas networks and also infrastructure, including LNG plants such as Oman LNG, right to the point of usage, stated Walid Hadi, Senior Vice Head Of State, Country Chair, Shell Oman in a Linkedin post.

In another contract, Covering Oman has taken a 35 percent stake in Green Power Oman (GEO), the consortium that is developing the country’s largest eco-friendly environment-friendly hydrogen project in Al Wusta as well as Dhofar governorates, Oman. The hydrogen will certainly be produced from as much as 25 gigawatts of solar and wind energy.

Other members of this consortium consist of OQ (with its subsidiary Oman Energy Growth), InterContinental Power, EnerTech Holding Company, KSCC as well as Golden Root Wide Range for Trading. Worley is supplying principle feasibility research solutions for the task.

The third agreement concern a lasting LNG offtake contract. Covering Oman has authorized a term sheet with Oman LNG for the purchase of 0.8 million metric tonnws annually of liquefied natural gas (LNG) for a duration of 10 years, starting from 2025.

Last Updated:  15 January 2023

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