TotalEnergies and its partners in Oman have broken ground on construction of the $1.6 billion all-electric-powered Marsa LNG facility to be situated at the entrance to the Persian Gulf as the first marine LNG bunker hub in the Middle East.
Marsa LNG, a joint venture between TotalEnergies (80%) and Oman state-owned producer OQ Exploration and Production (OQEP) (20%), is building the facility that will be one of the lowest-carbon-intensity LNG plants in the world when it drops its first LNG, currently targeted for 2028.
The project at the port of Sohar in northern Oman integrates natural gas production from Block 10 onshore in Oman’s Greater Barik Area, a fully electric liquefaction plant of 1 mtpa capacity, and a dedicated 300 MWp photovoltaic solar plant, TotalEnergies said in announcing the construction start on 1 May in Sohar.
The joint venture, which reached a final investment decision in April 2024, has also contracted for a new LNG bunkering vessel to be built and delivered to Sohar by 2028.
CEOs Turn First Shovels of Sand
OQEP is Oman’s third-largest oil and gas producer and reserve holder after Petroleum Development Oman and Shell, according to investment research published by Ubhar Capital. In 2024, OQEP reported production of 227,800 BOE/D.
“The Marsa LNG project represents a solid step forward, harnessing cutting-edge technology and strategic collaboration to ensure a cleaner and affordable energy future,” OQEP CEO Ahmed Al Azkawi said in a news release.
“As the first LNG bunkering hub in the Middle East, Marsa LNG will play a pivotal role in reducing emissions in the shipping industry while reinforcing Oman’s position as a key player in the global energy sector.”
OQEP’s CEO took a shovel to the ceremonial sand in Sohar together with Salim bin Nasser Al Aufi, Oman’s minister of energy and minerals, and Patrick Pouyanné, chairman and CEO of TotalEnergies.
Given what he called the project’s “ambitious technical design,” Pouyanné said, “We intend to set the standard and pave the way for the next generation of low-emissions LNG plants across the world. We also offer an effective way to support the shipping sector’s energy transition by providing lower-emissions marine fuel in a key location at the entrance of the gulf.”
In his comments, Al Aufi reiterated his ministry’s “steadfast commitment to supporting downstream energy projects as a vital pillar of economic integration across the industrial, trade, port, and logistics sectors.”
Driving Low Emissions Lower
Once operational, Marsa LNG is expected to produce less than 3 kg CO2e/BOE in Scope 1 and 2 emissions, approximately 90% lower than the current industry average of 35 kg CO2e/BOE for LNG plants, according to TotalEnergies.
In the shipping sector, LNG-fueled ships already emit up to 23% less greenhouse gas compared with those running on fuel oil, and the lower-carbon LNG available at the Port of Sohar can further reduce those emissions, the company noted.
TotalEnergies said it aims to increase the share of natural gas in its sales mix to nearly 50% by 2030 as part of its strategy to lower carbon emissions and eliminate methane emissions across the gas value chain. As of 2024, the French supermajor ranks as the world’s third-largest LNG player, with a portfolio totaling 40 mtpa.
In 2024, TotalEnergies produced 65,000 BOE/D in Oman, with operations spanning oil production in Block 6, natural gas developments in Block 10 through its partnership with OQEP in the Marsa LNG project, and LNG through its stakes in Oman LNG and Qalhat LNG (via Oman LNG) (Fig. 1).
Shell holds a 53.45% working interest in Block 10, which will provide the gas feedstock to Marsa. OQEP and Marsa LNG hold stakes of 13.36% and 33.19% respectively, in Block 10, according to Shell’s website.
