Singapore: Oman LNG and BP Singapore sign agreement for LNG supply

An LNG tanker passes boats along the coast of Singapore
An LNG tanker passes boats along the coast of Singapore Reuters

For the supply of LNG (Liquefied natural gas) in Singapore, Oman LNG, established by the Royal decree of Sultan Qaboos of Oman, and South-east Asia based oil refining and marketing service provider BP Singapore Pte. Ltd have signed a major Sales and Purchase Agreement (SPA).

Since both the companies share a strong partnership, after the recent deal, this agreement is considered as their main priority.

The news came after an official statement made by Harib Al-Kitani, the Chief Executive Officer of Oman LNG and Jonathan Shepard, the Chief Operating Officer of BP LNG confirmed the signing under the patronage of Oman's Minister of Oil and Gas, Dr Mohammed bin Hamad Al Rumhi, who is also the current chairman of Oman LNG.

According to Emirates News Agency (WAM), the signing event took place in the capital of Oman, Muscat. High ranked officials and senior executives from the Oil and Gas industry of the region attended the ceremony.

The SPA is a Free-on-Board (FOB) contract, applicable from January 2018 and will span over seven years, lifting almost 1.1m tonnes per annum, which is almost equivalent to 18 LNG cargoes annually. The partnership will help to boost the global LNG market, where Oman LNG invests a particular fund.

Dr. al-Rumhy said that the SPA will not be only additional reserves but will also sustain and expand their LNG Business. According to him, because of the new deal, the middle-east country will continue to be the preferred destination for sourcing clean energy.

In addition, he also said that the ultimate earnings from this partnership will benefit Oman's national economy and provide a boost to the GDP. This transaction will also aid efforts for In-Country Value and Corporate Social Responsibility, which are particular drivers to the socio-economic fabric of the country.