Sohar Port to invest $1.6 billion in LNG bunkering project

Sohar Port and Freezone has signed a sub-usufruct agreement with Marsa Liquefied Natural Gas, a joint venture between Total Energies EP Oman Development and OQ, for the development of a liquefied natural gas (LNG) liquefaction plant in the port.

The LNG bunkering project boasts a distinct commitment to sustainability as “the first of its kind” powered by 100% solar electricity. The port plans to invest $1.6 billion into the project, spanning over 44,5 hectares.

“At Marsa, we’re dedicated to driving impactful changes and embracing sustainable solutions that deliver both environmental and economic dividends. The LNG bunkering project exemplifies our shared dedication to pioneering innovation and sustainability. We’re honored to collaborate with SOHAR Port on this pioneering initiative that promises to shape the future of our industry,” Sergio Giorgi, Managing Director and Country Chair, Marsa LNG Interim CEO, stated.

“The signing of the sub-usufruct agreement represents an important milestone for Marsa LNG project, the region’s first LNG bunkering hub. This global collaboration is a testament to our consistent steps and unified goals toward supporting economic growth in the Sultanate of Oman in line with Oman Vision 2040 and the national agenda to achieve carbon-neutrality by 2050,” Ahmed Al Azkawi, Chief Executive Upstream at OQ Exploration and Production said.

“We are confident that Marsa LNG bunkering facility will further solidify Sohar Port’s position as a key logistic hub in the region by adding a unique yet important service to the Port’s world-class services. We take this opportunity to thank the Ministry of Energy and Minerals and the Ministry of Transport, Communications and Information Technology for their unwavering support and wise guidance in making this project a reality.”

“This agreement signifies a monumental step forward in our commitment to sustainable innovation. This project will undoubtedly increase vessel calls to SOHAR Port for bunkering of traditional and alternative fuels, further solidifying our position as a key player in the maritime industry. By harnessing renewable energy and cutting-edge technology, we’re leading the charge towards greener, more efficient maritime operations that not only benefit our industry but underscore our commitment to environmental responsibility,” Emile Hoogsteden, CEO of Sohar Port noted.

According to the partners, this agreement represents a strategic step towards achieving Oman’s Vision 2040, reinforcing the country’s commitment to sustainable development and enhancing the maritime sector.

This partnership also embodies collaborative efforts to promote innovation, sustainability, and economic growth opportunities for Oman.