Oman’s Ministry of Energy and Minerals, OQ and Oman LNG have signed agreements with Shell for the production of Liquefied Synthetic Gas (LSG) from hydrogen and carbon dioxide.
Produced when green hydrogen is combined with captured carbon dioxide to produce natural gas which is then liquefied, the gas can be introduced into existing gas networks and infrastructure owned by Oman LNG as a low-carbon alternative.
Additionally, OQ and Shell International signed a partnership agreement to develop green hydrogen capacity in Oman after acquiring a 35% shareholding interest in the Green Energy Oman (GEO) project.
Having been in development since 2018 by OQ, Intercontinental Energy, Enertech, and Golden Wellspring Wealth for Trading, the project is expected to be developed in multiple phases to produce around 1.8 million tonnes of green hydrogen once at full capacity.
Under the agreement, Shell will join the consortium as the operating partner following its 35% equity holding acquisition.
“The entry of Shell to this vital project constitutes a qualitative step that will enable the consortium to benefit from their advanced global expertise in this field,” said Najla Bint Zuhair Al-Jamili, CEO of Alternative Energy at OQ.
Walid Hadi, Senior Vice-President and Country Chair of Shell Oman, commented, “We are pleased to sign these important agreements that will strengthen our partnership with the Sultanate of Oman.”
“With our entry to the Green Energy Oman (GEO) consortium, we are taking a further step to advance lower and zero emissions energy projects in Oman. The project remains in its early phase, but this is a sign of the potential we see for Oman through the energy transition,” Hadi added.
Speaking at the Green Hydrogen Summit Oman in December 2022, Salim al Aufi, Minister of Energy and Minerals reiterated Oman’s hydrogen ambitions.
Read more: Oman eyes international hub status for hydrogen production
“We are trying to make Oman an International hub when it comes to hydrogen production, renewable energy, and ultimately ammonia for export into international markets, but also hydrogen as a replacement for the current gas consumption in our industries,” al Aufi said.
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