Oman LNG planning to increase production capacity by 1mn tonnes

Muscat - 

The sultanate’s sole liquefied natural gas (LNG) producer, Oman LNG is planning to increase capacity by more than one million tonnes as the starting of production from Khazzan gas projects raised the prospects for additional gas availability.

For a very long time Oman LNG was working at 75 per cent of its capacity as there were problems related to insufficient availability of natural gas, a key feed needed to produce LNG. And with the commencement of natural gas production at Khazzan, situation has changed, Harib al Kitani, chief executive officer Oman LNG told Muscat Daily.

He said,”Discussions are at the very initial stage, if we start now it may take up to three years to implement it fully. We are talking to the board for raising the production by one million tonnes per annum, and we have been promised by the government for additional gas allocation.”
Oman LNG plans to increase production capacity from 9.9mn tonnes to around 11mn tonnes.

Explaining the potential, Kitani said, earlier there was a problem due to limited availability of natural gas, and they have to compete with sectors such as power generation and domestic industry for getting gas supply.

However things have changed as the country got additional gas supplies from Khazzan gas project.

“We are working at full capacity, and now working closely with the government to see if additional gas can be made available for future expansions,” he said.

On expansion projects Kitani revealed that, with the improvement in natural gas supply situation, the company has taken a number of measures to increase production by adopting new technologies, replacing some equipment.

“Now, we are planning to go one step forward, which is to de-bottlenecking the project, and our studies show that we can increase our production by upto one million tonnes, which is quiet substantial. The discussions on the project has already started,” Kitani said.

Besides increasing capacity, the company is also talking to the government to extend the life of its existing plant beyond 2025 as the plant started commissioning production in early 2000 with an active life cycle of around 25 years.

“Discussions are going on about how long we can sustain this production. Meanwhile, we are looking at every possibility to capitalise the capacity. And if we have more gas available, we can think of adding a floating gasification plant to capture the opportunity or even putting up a minuscule LNG plant in a short period of time,” he added.

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