Oman reschedules LNG exports due to gas shortages

Oman reschedules LNG exports due to gas shortages

Gas shortages and an increase in domestic demand for power generation forced Oman to reschedule some of its LNG exports.

Sources told Reuters that 5 to 10 percent of LNG destined for exports during this year were rescheduled for delivery in the coming years. Most of the country’s LNG exports are dispatched to Japan and South Korea.

Plans for rapid industrialization could be hampered unless the country finds additional gas supplies. Currently, companies are delaying expansions due to gas shortage for Oman’s industry.

Oman exported close to 410 billion cubic feet of gas in 2013, about 37 percent of its total production. However, Oman’s Khazzan gas project that is expected to start up in 2017 could bring additional 1 bcf of gas per day to the production total, while an import deal signed with Iran could also aid the rising demand. Oman would import Iranian gas via a planned Gulf pipeline.

However, Salim al-Aufi, undersecretary at Oman’s Ministry of Oil and Gas said the gas supplies were under stress due to surge in power generation which was higher than expected during the summer. He added that Oman has sufficient gas supplies.


LNG World News Staff; Image: Oman LNG

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