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Oman has a tough future as an LNG exporter. Lower prices and growing domestic demand mean volumes and revenues both fell for 2014, and are set to fall further.
Oman’s LNG exports were lower than expected in 2014 amid growing gas shortages in its domestic market. Gas revenues, at OR 1.45bn ($3.8bn) were only slightly down on 2013. However, though Oman’s 2015 budget envisages that gas revenues will be steady this year, lower oil prices mean that this is optimistic – a trend already visible in the latest Korean import statistics.
South Korea is Oman’s largest single LNG customer, taking around half of total exports - Japan takes almost all the rest. For March 2015, Korea paid $14.39/mn BTU for Omani LNG. While this is significantly higher than Korea’s average LNG import price, it is down by $3.83/mn BTU (or 21%) on the average price Korean buyers paid Oman in 2014. The latest Japanese import price, for February, is down by 13% on the average 2014 price (see tables and graphs).
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