European regulator approves Oman’s $1.6bn LNG project

The European Commission has approved a $1.6 billion liquefied natural gas (LNG) project in Oman’s Sohar Port.

The project, which is being jointly developed by Oman energy investment company OQ and France’s TotalEnergies, is unlikely to raise competition concerns due to its limited impact on the European economic area, the Oman Daily Observer reported, quoting the commission ruling.

The ruling comes after possible breaches under EU merger regulations were analysed, the report said.

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The joint venture – Marsa Liquefied Natural Gas – will be 80 percent owned by TotalEnergies and 20 percent by OQ.

The upstream component will have a capacity of 150 million cubic feet per day of gas from Block 10.

The downstream element involves the construction of an LNG plant with a capacity of one million tonnes per year and a 300-megawatt solar plant to provide the LNG facility’s total annual energy needs.

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Last month, Oman’s government announced construction of a new LNG facility next to the existing Qalhat LNG complex, with an estimated production capacity of 3.8 million metric tonnes per annum.

The preliminary front-end engineering and design study will begin shortly, followed by a final investment decision.