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TotalEnergies SE has amended an agreement to extend its partnership with Oman LNG, an Omani liquefied natural gas (LNG) joint venture in which the company holds a 5.54 percent stake.
Under the agreement, TotalEnergies is extending its interest in Oman LNG by ten years and in Qalhat LNG by five years, both beyond 2024, the company said in a news release Thursday. In January, TotalEnergies signed an agreement with Oman LNG to offtake 0.8 million tons per annum (mtpa) of LNG for ten years from 2025, making it one of the main off-takers of Oman LNG’s production. Further, the parties agreed to finance investments to reduce the plant’s greenhouse gas emissions during the extension, the French energy major said.
Located on the northeast coast of Oman, the Oman LNG liquefaction complex comprises two liquefaction trains, each with a capacity of 3.8 mpta of LNG. It is adjacent to the Qalhat LNG project, which consists of one 3.8-mtpa train and in which Oman LNG holds a stake. The site’s total production is 11.4 mtpa, according to the release.
“We are pleased to extend our partnership with Oman LNG”, TotalEnergies Senior Vice President Middle East & North Africa, Exploration & Production Julien Pouget said. “This LNG contributes to our supply of Europe and Asian markets, and strengthens our integrated and flexible global portfolio, in line with TotalEnergies’ ambition to increase its LNG production and long-term purchases by 50 percent by 2030”.
In October, Shell Gas BV, a subsidiary of Shell plc, also signed an amended agreement to extend its partnership with Oman LNG. Oman LNG signed various agreements to secure its gas supply until 2034. Under these agreements, Shell Gas will remain the largest private shareholder in Oman LNG, with a 30 percent interest, and will continue its role as a technical adviser to the state-owned project.
Shell International Trading Middle East FZE signed an agreement to purchase up to 1.6 million metric tons per annum of liquefied natural gas (LNG) from Oman LNG from 2025 to 2034, making Shell the largest LNG off-taker from Oman LNG.
Oman LNG is majority-owned by the Government of the Sultanate of Oman with a 51 percent interest. The other shareholders are Korea LNG with a 5 percent stake, PTTEP with 2 percent, Mitsubishi with 2.77 percent, Mitsui (2.77 percent, and Itochu with 0.9 percent. Qalhat LNG is also majority-owned by the Government of Oman with a 46.84 percent interest and Oman LNG with 36.8 percent.
LNG FSPRU Commissioning
Meanwhile, TotalEnergies has commissioned Cape Ann, its floating storage and regasification unit (FSRU) for LNG, located in the port of Le Havre. The terminal injected its first megawatt-hours (MWh) of gas into the grid operated by GRTgaz, using LNG from Norway, TotalEnergies said in a separate news release.
TotalEnergies has contracted 50 percent of the terminal’s annual capacity of around 5 billion cubic meters to supply it with LNG from its global portfolio. The remaining capacity will be marketed according to rules approved by the relevant regulator, the company said.
Renewable Acquisition in Germany
In other developments, TotalEnergies signed agreements with the Aloys Wobben Foundation (AWS) to acquire the entire share capital of the German company Quadra Energy.
Specializing in the aggregation of renewable electricity, Quadra Energy purchased production from around 5,000 wind and solar power plants in 2022, and then resold 14 terawatt-hours (TWh) on wholesale markets and to German resellers and customers, according to an earlier news release. Quadra Energy has also developed a portfolio of medium-term contracts for the purchase of two TWh of renewable power and their sale through corporate power purchase agreements (PPAs).
The acquisition, subject to approval by the relevant authorities, will enable TotalEnergies to further strengthen its integrated power business in Germany. The assets will enable the company “to strengthen its trading capacity on the intraday markets and to broaden its marketing activities to offer its German customers competitive corporate PPAs and clean firm power”, it said. Quadra Energy’s in-depth knowledge of local renewable developers will also make it easier for TotalEnergies to develop its own renewable production capacity in the country, the company added.
“We are pleased with the acquisition of Quadra Energy, and I would like to welcome their teams, who will be an essential component of our presence in Germany’s electricity market”, TotalEnergies President for Gas, Renewables, and Power Stéphane Michel said. “This agreement will enable us to speed up the development of our Integrated Power activities in the country – whose electricity market has particularly attractive fundamentals – in both production, trading, aggregation, and marketing of Corporate PPA and clean firm power. This acquisition thus contributes positively to our profitability target of 12 percent ROACE [return on average capital employed] by 2028 for this business segment”.
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