Oman LNG Forms Contract With Chinese Company To Provide 1M Metric Tonnes of LNG

Oman LNG has agreed to supply China's Unipec with approximately 1 million metric tonnes of liquefied natural gas (LNG) per year beginning in 2025, according to state news agency ONA.

This is Oman LNG's first contract with a Chinese company, and the contract "promotes the company's efforts to reach new markets," according to a tweet from the company.

Unipec is the trading arm of Sinopec, Asia's largest refiner.

Earlier in November, Sinopec signed a 27-year supply agreement for 4 million tonnes of LNG per year with QatarEnergy, the longest such agreement to date.

In November, China's Shenzhen Energy Group signed a long-term agreement to buy LNG from oil major BP, though the contract's terms were not disclosed.

China was the world's largest LNG importer in 2021, but relinquished the title to Japan last year as strict COVID lockdowns disrupted its economy.

Following Russia's supply cuts to Europe, the country reduced its reliance on spot purchases this winter, instead opting for piped gas and long-term contracts. Russia's move put enormous pressure on the European and global gas markets, causing Asian spot LNG prices to reach all-time highs last year.

Oman LNG signed a supply agreement with Turkey's energy importer BOTAS last month for 1 million tonnes of LNG per year, as well as an agreement to supply up to 1.6 million tonnes of LNG to France's TotalEnergies and Thailand's state-owned firm PTT Pcl.

It signed agreements in December with Japanese electricity generator JERA, as well as trading houses Mitsui & Co and Itochu Corp, to supply 2.35 million tonnes of LNG per year beginning in 2025 and lasting up to ten years.