- China remains the leading market of Oman crude exports
According to Zawya article published on May 18, 2023, the Sultanate of Oman has emerged as among the top ten liquefied natural gas (LNG) exporters in the world, driven by a surge in demand for clean energy sources. The country's LNG exports reached a record high of 1.16 million metric tonnes (MT) in April 2023, an increase of 0.08 million metric tonnes in the previous month.
According to the monthly gas report of GEFC (Gas Exporting Countries Forum), the top ten LNG exporters in the world include the US, Qatar, Australia, Russia, Malaysia, Indonesia, Algeria, Nigeria, Oman and Trinidad and Tobago.
The report said that in April 2023, global LNG exports increased sharply by 6% (1.95 MT) y-o-y to 35.58 MT. Non-GECF countries were the largest LNG exporter in April 2023, with a market share of 50.2%, representing an increase from 47.5% in April 2022. Oman is not a member of GECF.
Oman's rise as a major LNG exporter can be attributed to the country's strategic location, abundant natural gas reserves and modern infrastructure. The country has invested heavily in developing its LNG industry over the past few years, with the aim of capitalising on the growing demand for clean energy in Asia and Europe.
One of the key factors that have contributed to Oman's success as an LNG exporter is its proximity to major markets such as China, Japan and South Korea. These countries are among the world's largest consumers of LNG, and Oman's location allows it to supply LNG to these markets at a competitive price. China remains the leading market of Oman crude exports. China remains the top destination of Oman crude.
In recent years, Oman has also made significant investments in expanding its natural gas production capacity. The country has discovered several new gas fields, including the Mabrouk field, which is estimated to hold around 4 trillion cubic feet of gas. In January, Oman’s Ministry of Energy and Minerals has announced the start of the gas and condensate production from the Mabrouk field in Concession 10, in which production is expected to reach more than 0.5 billion cubic feet per day (bcf/d) of gas by mid-2024. New developments such as BP’s Khazzan and Ghazeer tight gas projects have also boosted production by more than 1 billion cubic feet per day since the start of their operation in 2017 and 2020 respectively.
Oman has also undertaken several projects to enhance its LNG export infrastructure, including the planned construction of a new LNG terminal at Sohar Port.
The surge in LNG exports from Oman is also being driven by the growing demand for clean energy sources in Asia and Europe. Several countries in these regions are looking to reduce their dependence on fossil fuels and shift towards cleaner sources of energy, such as natural gas. As a result, demand for LNG has been increasing rapidly in recent years, and Oman is well-positioned to capitalize on this trend.
Amid record production, the Sultanate of Oman now exports liquefied natural gas to more than 20 countries globally, with Croatia’s Krk LNG terminal set to receive its first LNG cargo later this month.
