Oman’s gas and power sector is at the crossroads. Power and thus fuel demand is rising, but at the same time domestic gas prices have been too low to encourage production from difficult fields. Also, despite suffering a short term gas shortage, Oman needs to meet its long term contracts to export LNG.
The government plans to address these issues in its energy sector review (See p19). Its scope is expected to include assessment of the fuels needed to meet soaring demand; gas allocation priorities and prices paid to producers and charged to consumers; energy efficiency; the future of LNG exports when BP’s tight gas project starts up, and in the face of a radically changing global market; and the merger of Oman’s two LNG companies. Gas and power are at the heart of the review whose central goal is to create economic growth and jobs. (CONTINUED - 1693 WORDS)