Tuesday, 21 Mar 2023
Oman’s share in global LNG exports to go up in future

Oman’s share in global LNG exports to go up in future

Speaking to media persons final week at the Oman Convention and Exhibition Centre, although announcing the hosting of the International Gas Union Research Conference in Muscat subsequent year, Professor Joe Kang, president of the International Gas Union (IGU) stated, “Oman in recent times has made significant discoveries in the gas sector. And I believe it will certainly help the country’s economic development by increasing the availability of natural gas.”

“As per IGU, Oman supplies around 3 per cent LNG to global trade, which according to me is huge,” Kang stated.

“The government’s step to increase gas production along with the measures taken by authorities to de-bottleneck the capacity at its LNG manufacturing plant could help the country to export more gas to the world,” he added.

Mahmoud al Balushi, Oman LNG’s chief industrial officer stated, “Oman’s share in global LNG market should rise in future as the de-bottlenecking project, which is being currently undertaken in various stages, would result in around 10 per cent increase in our capacity. Which means, we will have more gas to export.”

He, nonetheless, clarified that in terms of percentage of global share, the boost might not be extremely considerable as the consumption and demand for gas is also growing quickly globally.

De-bottlenecking physical exercise undertaken by Oman LNG’s 3-train complicated at Qalhat is probably to be completed in 2021, following which the total LNG capacity of the plant will rise to 11.4mn tonnes per annum from the existing 10mn tonnes per annum.

Kang additional stated that the uncertainty in global power costs is the largest challenge ahead of them. “It is difficult to predict prices, as on one side we are experiencing rapid growth in LNG consumption in countries like China and India, and on production side there is an uptake in production from the US shale gas and the Artic region in Russia.”

“Oman is an exporter of LNG and they are worried about prices. On the other side, consumers are happy with low prices. So, we know that very low and very high prices are not good for the country,” Kang stated.

He stated that the investments in the gas sector are set to rise due to challenges humans are facing from climate alter, and it will be an chance for the gas sector as numerous nations are attempting to balance carbon emission and financial development that could shift the concentrate to gas from coal.

Information Source: Muscat Daily

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