Oman port will provide LNG fueling service
Natural gas from onshore plays in the Mideast country of Oman could be used to develop a maritime fueling station for liquefied natural gas, French supermajor Total said.
The company signed a memorandum of understanding with the Omani government to develop, along with its Dutch supermajor competitor Royal Dutch Shell, an onshore natural gas play that could have peak production of 1 billion cubic feet per day (Bcf/d).
Analysis from consultant group Wood Mackenzie found improved market conditions and improvements on where operators can break even in terms of the price of oil led to an uptick in industry sentiment, UPI reported.
For natural gas, the bonanza could be in Iran, Norway and Oman, Kallanish Energy understands.
Total said it would use its share of the gas in Oman to develop a regional hub for LNG bunkering for fueling marine vessels.
Bunkering is the ship-to-ship transfer of fuel. Total last July said it was making progress with LNG as a fuel through its marine fuels subsidiary. Its first agreement for LNG bunkering was signed with Brittany Ferries, a French passenger and freight shipper that will begin receiving supplies in 2019.
“Developing an LNG bunkering service will generate in-country value and job opportunities, and will support industry diversification through fostering the shipping activity in Oman,” Arnaud Breuillac, the president of Exploration and Production at Total, said in a statement over the weekend.
The French supermajor said LNG as a fuel source is transformative given the maritime shipping industry’s quest to cap emissions of nitrogen oxide, carbon dioxide and other harmful greenhouse gas emissions, UPI reported.
The 173-member International Maritime Organization last month agreed to cut emissions in half from its industry from 2008 levels by 2050.
Source: Kallanish Energy