Muscat, 9 February 2023 (TDI): Oman LNG has signed a four-year contract with UNIPEC to deliver 1 million metric tonnes per annum (mtpa) of LNG. This agreement is Oman LNG’s first contract with a Chinese buyer. Delivery will begin in 2025.
Oman LNG hoped that this move would leverage Oman LNG’s growing partnership with international energy firms to reach new markets.
Last month, Oman LNG signed a 10-year gas supply agreement with Türkiye’s BOTAS for 1.4 billion cubic meters per year.
The Omani company signed LNG delivery agreements with TotalEnergies and PTT earlier this year. Each company will receive 800,000 tonnes of LNG annually.
Also Read: Türkiye, Oman sign 10-Year Natural Gas Agreement
French deliveries will start in 2025 and last for 10 years. Tahi deliveries will begin a year later and last for 9 years.
JERA, Mitsui & Co., and Itochu Corp, Japanese energy giants, recently signed contracts with Oman LNG to supply 2.35 million tonnes of LNG annually starting in 2025.
Sino-Oman Relations
China and Oman are on opposite sides of the world, but they have a unique relationship. They have diplomatic and trade relations that began in the 16th century.
Sino-China maintained cordial ties throughout the Cold War, and their alliance has grown even more potent in recent years. Trade is one of the main factors influencing the Omani-China relationship. China is Oman’s largest trading partner.
Oman is a significant component of the Belt and Road Initiative due to its strategic location on the Arabian Peninsula’s southeast coast. It is a critical gateway to the Arabian Peninsula and Africa.
The Belt and Road Initiative, also known as the One Belt, One Road (OBOR) initiative. This project is essential in strengthening China-Oman trade relations.
The massive infrastructure project connects Asia, Europe, and Africa via roads, railways, ports, and other infrastructure.
The initiative will improve trade and investment between the two nations and boost their economies. China and Oman have signed several transaction and investment agreements in addition to the BRI.
The two countries 2016 Free Trade Agreement (FTA) increased trade and investment. The FTA has reduced trade barriers between the two countries, making it easier for businesses to trade and invest in each other’s markets.
Cooperation on the military front is a significant aspect of China’s relations with Oman. Oman has been a crucial ally in China’s recent effort to strengthen its military presence.
The two countries have signed several military cooperation agreements, including one to build an army base in Duqm, Oman.
Additionally, Oman and China have strong cultural ties. Cultural exchange between the two nations has a long history. Chinese citizens are becoming more interested in learning about Omani history and culture.
Chinese tourists are visiting Oman. The Chinese Embassy has hosted cultural events and exhibitions to promote cultural exchange. Sino-Oman are also committed to global stability and regional peace.
