Oman: Khazzan Boosts LNG Exports To Record Levels

Oman’s LNG exports hit a four-year high in 2017. Since then the 1bn cfd Khazzan field has hit full capacity. With domestic demand lagging, 2018 may see Oman fill up its 10.4mn t/y export capacity for the first time ever.

Two years ago, Oman’s LNG sector looked in trouble: output had tumbled from 2007’s record of 9.1mn t/y to just 7.9mn tons in 2015 as concerns over rapidly-rising domestic gas consumption called into question the country’s long-term viability as an LNG exporter ( MEES, 11 November 2016 ).

But since the start-up of the giant BP-operated Khazzan gas field in October 2017 there has been a near-180 degree turnaround in the country’s prospects as an LNG exporter. Talk of importing Iranian gas to keep its 10.4mn t/y of LNG export capacity in business has been consigned to history.

In the wake of Khazzan start-up the country’s gas output edged up to a record 39.1bcm (3.78bn cfd) in 2017. LNG production also edged up, hitting a four-year high of 8.6mn tons according to figures in Oman LNG’s recently-released annual report (Oman’s customers received 8.24mn tons – see chart – implying ‘boil off’ losses of around 4%). (CONTINUED - 1275 WORDS)

DATA INSIDE THIS ARTICLE

chart Oman LNG Export Volumes (Mn T) Hit 4-Year High For 2017 But Revenues Remain Less Than Half 2013 Levels
chart Oman's LNG Export Contracts*: The Country's 10.4Mn T/y Capacity Is Fully Committed To 2024 But Contracts Rapidly Expire Beyond This Date (MN T/Y)
table Oman LNG Sales Contracts