In view of developing an integrated gas project in the Sultanate of Oman, Total has signed a Memorandum of Understanding (MoU) with its government – covering both upstream and downstream business and aiming to develop natural gas resources in the Middle Eastern country.
In line with the MoU, Total and Shell as operator will develop several natural gas discoveries located in the Greater Barik area on onshore Block 6, with respective shares of 25% and 75%, as per the agreement between both companies.
Total will use its equity gas entitlement as feedstock to develop in Oman a regional hub for Liquefied Natural Gas (LNG) bunkering service to supply LNG as a fuel to marine vessels. This will be achieved thanks to a new small-scale modular liquefaction plant to be built in Sohar port. The plant will comprise a train of around 1 Mt per year and will offer the flexibility for expansion as required by the development of the LNG bunkering market.
For the Total Group, this is a showcase of its efforts towards ‘shaping tomorrow’s energy’ – helping to build a regional epicentre for LNG. For Total Lubmarine, this is also a great opportunity to be part of a group that is working with LNG for marine use – helping them to understand the fuel challenges facing their customers and ensuring that they can strategise lubrication solutions for the post 2020 marketplace.
Serge Dal Farra, Global Marketing Manager for Total Lubmarine stated:
“At the moment, there is a very limited experience with LNG on 2-stroke engines in the market, and so it is too early to advise our customers and the wider community on what the exact challenges will be.”
“Through Total Group’s continued work with LNG in Oman, TMFGS’s charter contract with MOL, and Total’s role as a supplier for CMA CGM, we are well placed to see the challenges of LNG first hand. This will help us to create products and services that allow customers using LNG to optimise engine lubrication and therefore control OPEX. ”