TotalEnergies breaks ground on Middle East’s first LNG bunkering hub

Business Developments & Projects

French energy giant TotalEnergies and Oman’s OQ Exploration and Production (OQEP) have kicked off construction of the Marsa LNG plant in the port of Sohar, taking the next step toward establishing the Middle East’s first LNG bunkering hub.

Courtesy of TotalEnergies

The milestone was celebrated with the ground-breaking ceremony, one year after the final investment decision (FID) on the 1 million ton per year (Mt/y) liquefaction plant.

Being built by Marsa LNG LLC, a joint venture between TotalEnergies (80%) and OQEP (20%), the plant is expected to start producing LNG in the first quarter of 2028, supplying primarily marine fuel market in the Gulf.

According to the developers, the Marsa LNG was designed as one of the lowest carbon intensity LNG plants in the world with less than 3 kg CO2e/boe of scope 1 and 2 emissions.

The plant will be fully electrified and combined with a 300 megawatt-peak (MWp) photovoltaic solar farm that will supply the equivalent of the its annual energy needs.

TotalEnergies’ JV has also signed a charter contract for a new LNG bunkering vessel that will operate at the first LNG bunkering hub in the Middle East. The vessel named Monte Shams is under construction and will be stationed in Sohar from 2028, where it will supply LNG to a wide range of vessels, including containerships, tankers, and large cruise ships.

“I’m very proud to see Marsa LNG breaking ground, alongside our longstanding partner OQEP, and with the strong support from the Sultanate’s authorities. This flagship project demonstrates that LNG production can be very low carbon, contributing to making gas a long-term transition fuel,” said Patrick Pouyanné, Chairman and CEO of TotalEnergies.

“With an ambitious technical design, we intend to set the standard and pave the way for the next generation of low-emissions LNG plants across the world. We also offer an effective way to support the shipping sector’s energy transition, by providing lower-emissions marine fuel in a key location at the entrance of the Gulf.”

Salim bin Nasser Al Aufi, Oman’s Minister of Energy and Mineralsstated that the project “marks a significant step in advancing low-emission energy solutions, reinforcing Oman’s position as a reliable regional hub for clean maritime fuel” in line with the objectives of Oman Vision 2040, and underscoring the country’s “dedication to providing responsible energy solutions for the global shipping sector while actively reducing its carbon footprint”.