OQEP issued a $24 million guarantee for the Marsa LNG terminal at Sohar Port, reducing to $4 million over ten years. Developed jointly by TotalEnergies and OQ Group, the project aims for low greenhouse gas emissions. Financing will come from a mix of loans, with Technip Energies contracted for construction.
Oman-listed OQ Exploration and Production (OQEP) has announced the issuance of a $24 million parent company guarantee for the Marsa LNG bunkering terminal at Sohar Port. OQEP serves as the upstream oil and gas segment of the state-owned OQ Group. Over a duration of ten years, this guarantee will be scaled down to $4 million, as detailed in a statement released on the Muscat Stock Exchange on Tuesday.
The Marsa LNG project, developed in collaboration with TotalEnergies, which holds an 80 percent stake, and OQ Group at 20 percent, aims to create one of the LNG plants with the lowest greenhouse gas emissions globally. On the day prior, Boskalis, a dredging company from the Netherlands, confirmed the commencement of dredging operations at the Marsa LNG site shortly.
Financing for the Marsa LNG plant’s construction is planned through a subordinated loan from the joint venture partners and a $500 million loan sourced from a consortium of banks in Oman, the region, and internationally, set to take place in September 2024. Additionally, in April 2024, an Engineering, Procurement, and Construction (EPC) contract was awarded to Technip Energies, which includes a natural gas liquefaction train capable of producing one million tons of LNG annually.
The issuance of a $24 million parent company guarantee by OQEP for the Marsa LNG project marks a significant step toward establishing one of the lowest greenhouse gas-emitting LNG plants globally. This project, spearheaded by TotalEnergies and OQ Group, involves substantial financial support and advanced engineering contracts that pave the way for future developments in LNG technology and infrastructure.
Original Source: www.zawya.com
