Oman LNG signs binding term-sheet agreement with China’s UNIPEC

Muscat: Oman LNG signed a binding term-sheet agreement with China International United Petroleum and Chemical Co. (UNIPEC) to supply one million metric tonnes per annum (mtpa) of LNG starting in 2025.

This agreement comes to leverage the ever-growing partnership between Oman LNG and international energy firms, where UNIPEC has become the latest beneficiary of the Omani LNG marking the first LNG term deal with a Chinese firm. The deal constitutes a remarkable milestone for both companies and countries opening doors for new opportunities in the Chinese market.

The signed term-sheet agreement encapsulates supplying a total volume of one million metric tonnes per annum of LNG from Oman LNG to UNIPEC, the Trading Arm of the Chinese company SINOPEC.
The agreement is based on a 4-year contract, starting in 2025. Signing term-sheet agreements beyond 2024 emphasise Oman LNG’s role in sustaining the Sultanate of Oman’s reputation as a reliable and trusted LNG supplier, coupled with the effective management of business processes to produce clean energy, and deliver it to customers around the world safely and reliably.

The agreement’s signing ceremony was held under the patronage of Eng. Salim Nasser Al Aufi, Minister of Energy and Minerals in Muscat.

The agreement was signed by Hamad Al Nu’amani, CEO of Oman LNG, and Wang Yahang, General Manager of UNIPEC.

Speaking after the signing ceremony, Hamad Al Nu’amani, CEO of Oman LNG, said, “The term-sheet signing with UNIPEC marks another milestone, where the Omani LNG will be creating new opportunities in China. Such an agreement will further enhance our position in the global energy industry, and ensure we maintain our reputation as a clean and reliable energy supplier worldwide. This step boosts our ongoing efforts to add value to the local economy through growth and collaborations with international partners such as UNIPEC.”