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Released April 24, 2024 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--The first bunkering hub in the Middle East for liquefied natural gas (LNG) will have a low carbon footprint, thanks in part to the use of solar power, TotalEnergies SE (NYSE:TTE) (Courbevoie, France) said Monday.
The French supermajor said it made a final investment decision (FID) that supports the planned Marsa LNG facility in the port city of Sohar, located in Oman just outside the Straits of Hormuz.
"This very innovative project illustrates our pioneer spirit and showcases the relevance of our integrated multi-energy strategy, with the ambition of being a responsible player in the energy transition," said Patrick Pouyanné, the chairman and chief executive officer at TotalEnergies. "By paving the way for the next generation of very low emission LNG plants, Marsa LNG is contributing to making gas a long-term transition energy."
The Marsa LNG project will be powered by a 300-megawatt solar power plant. That positions it to be one of the cleanest LNG facilities in the world, with emissions intensity some 90% lower than its peers.
Elsewhere, Marsa LNG will rely on natural gas from the onshore Mabrouk North-East field, which only started production in January. TotalEnergies said the FID means the company can extend its rights to drilling in the block to 2050.
The facility is designed for a peak capacity of 1 million tons of LNG per year, the bulk of which would be slated for the marine fuel market in the Persian Gulf region, making it the first LNG bunkering hub in the Middle East.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project and Plant databases can click here for a project report on the Marsa LNG facility and click here for the plant profile.
"Used as a marine fuel, LNG helps to cut greenhouse gas emissions by up to 23% compared to conventional marine fuel and has the potential to reduce emissions significantly more if bio or synthetic LNG is used," TotalEnergies explained. "As such, marine LNG is a sustainable, affordable and immediately available way of reducing emissions in the shipping sector."
Maritime shippers are looking to alternative fuels to meet the climate obligations set by the International Maritime Organization. Maritime transport accounts for around 3% of total global greenhouse gas emissions.
Any LNG not sold as a bunkering fuel will be taken by TotalEnergies and its Omani counterpart. Rich in natural gas, with production up some 4% relative to 2022 levels, Oman is also one of the world's leading exporters of LNG.
TotalEnergies, for its part, is the third-largest LNG company in the world, with a global portfolio of some 44 million tons per year as of year-end 2023. The French company realized net operating income of $6.2 billion from its integrated LNG portfolio last year, lower than 2022, but higher than 2021 due to growth in its portfolio.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The French supermajor said it made a final investment decision (FID) that supports the planned Marsa LNG facility in the port city of Sohar, located in Oman just outside the Straits of Hormuz.
"This very innovative project illustrates our pioneer spirit and showcases the relevance of our integrated multi-energy strategy, with the ambition of being a responsible player in the energy transition," said Patrick Pouyanné, the chairman and chief executive officer at TotalEnergies. "By paving the way for the next generation of very low emission LNG plants, Marsa LNG is contributing to making gas a long-term transition energy."
The Marsa LNG project will be powered by a 300-megawatt solar power plant. That positions it to be one of the cleanest LNG facilities in the world, with emissions intensity some 90% lower than its peers.
Elsewhere, Marsa LNG will rely on natural gas from the onshore Mabrouk North-East field, which only started production in January. TotalEnergies said the FID means the company can extend its rights to drilling in the block to 2050.
The facility is designed for a peak capacity of 1 million tons of LNG per year, the bulk of which would be slated for the marine fuel market in the Persian Gulf region, making it the first LNG bunkering hub in the Middle East.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project and Plant databases can click here for a project report on the Marsa LNG facility and click here for the plant profile.
"Used as a marine fuel, LNG helps to cut greenhouse gas emissions by up to 23% compared to conventional marine fuel and has the potential to reduce emissions significantly more if bio or synthetic LNG is used," TotalEnergies explained. "As such, marine LNG is a sustainable, affordable and immediately available way of reducing emissions in the shipping sector."
Maritime shippers are looking to alternative fuels to meet the climate obligations set by the International Maritime Organization. Maritime transport accounts for around 3% of total global greenhouse gas emissions.
Any LNG not sold as a bunkering fuel will be taken by TotalEnergies and its Omani counterpart. Rich in natural gas, with production up some 4% relative to 2022 levels, Oman is also one of the world's leading exporters of LNG.
TotalEnergies, for its part, is the third-largest LNG company in the world, with a global portfolio of some 44 million tons per year as of year-end 2023. The French company realized net operating income of $6.2 billion from its integrated LNG portfolio last year, lower than 2022, but higher than 2021 due to growth in its portfolio.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
