French-based engineering company Technip Energies has been awarded a contract by TotalEnergies and OQ for the Marsa LNG bunkering project in Sohar, Oman.
The contract covers the engineering, procurement, and construction of a natural gas liquefaction train with an LNG production capacity of 1 mtpa.
The plant will use electric-driven motors instead of conventional gas turbines and will be powered by renewable electricity from a planned nearby solar farm which will cover 100% of the annual power consumption of the LNG plant.
This, according to the company, will be one of the lowest GHG-heavy LNG plants ever built. The LNG produced will be used as a marine fuel to reduce the shipping industry’s carbon footprint.
The Marsa LNG project is an integrated complex developed by TotalEnergies, which owns 80% of the project, and OQ – formerly known as the Oman Oil Company – owns the remaining 20%.
No financial details were revealed apart from the contract being ‘substantial’ which for Technip Energies is a deal between €500m and €1bn ($533m and $1.06bn) in revenue.
“The world’s net zero trajectory will require LNG as a critical source of energy while addressing emissions abatement. TotalEnergies and OQ’s progressive Marsa LNG project is an example of how we can decarbonise the LNG value chain by powering its production with renewable energy and using it as a marine fuel to reduce emissions linked to maritime transportation,” said Arnaud Pieton, CEO of Technip Energies.
TotalEnergies, which today made the final investment decision for the project, said that it aimed for the Marsa LNG project to be the first LNG bunkering hub in the Middle East.
