The results of the Oman Liquefied Gas Company 2022 showed that it achieved a historic leap in production and revenues, with increasing global demand, especially with the shift of many European countries away from Russia following its invasion of Ukraine.
Oman LNG succeeded in achieving its best ever annual performance since its inception in 2000, recording a jump in production to about 11.5 million metric tons.
The report of the results of the Oman Liquefied Gas Company 2022 showed that it recorded the highest annual shipment rate to global markets during 2022.
Oman LNG performance
The production of the Oman Liquefied Gas Company in 2022 recorded about 11.5 million tons of liquefied gas, which is the highest production rate since the start of the company’s operations, compared to 10.6 million tons in 2021 and 10.2 million tons in 2020.
The company also succeeded during 2022 in producing 200,000 tons of natural gas derivatives. As production locomotives worked at a high rate of 97.6%; As it was able to deliver approximately 176 shipments, the largest number of liquefied natural gas shipments since the start of the company’s work, an increase of 8% compared to 2021 when shipments reached 163 shipments, according to the data seen by the specialized energy platform.
The Oman LNG 2022 business results report revealed its success in adding 10 shipments to annual production in 2022 as part of the results of the locomotive decommissioning project, and another 12 shipments are expected to be achieved in 2021.
Also, 35 shipments of liquefied gas derivatives were loaded to its customers, and the company successfully completed the locomotive decomposition project, which comes to enhance productivity in the industrial complex of the Oman LNG company.
Spot markets accounted for 89% of total Omani LNG shipments during 2022, while shipments to contracting partners with the company amounted to about 11% of total shipments.
Profits of the Oman Liquefied Gas Company
The results of the Oman Liquefied Gas Company in 2022 recorded revenues of $5.774 billion, compared to $3.278 billion in 2021, an increase of 76%.
The company’s net profit amounted to $1.970 billion, an increase of 122% compared to the previous year when the company recorded $886 million, supported by the rise in global oil prices and the company’s efforts to enhance productivity.
Oman LNG and Qalhat LNG contributed to supporting government revenues with $5.032 billion (of which $3.331 billion came from Oman LNG and $1.701 billion from Qalhat).
Qalhat LNG achieved revenues of $3.071 billion in 2022, compared to $2.310 billion in 2021. Its profits after tax deduction amounted to $261 million, compared to $1.1 million in the previous year.
Qalhat LNG has allocated up to $1.701 billion to support government revenues. This includes operating costs for a total of 36 shipments successfully transferred during 2022, and the company succeeded in delivering 49 shipments to customers.
Oman LNG currently operates 3 LNG trains at its plant in Sur, with an enhanced production capacity of 11.4 million metric tons per year.
The company contributes to the government’s efforts to diversify sources of national income. The company’s factory is located on the coast of the city of Qalhat in the Wilayat of Sur in the Al Sharqiyah South Governorate.
Exceptional performance
The Chairman of the Board of Directors of the company, Talal bin Hamed Al-Awfi, said that during the year 2022, the company achieved an exceptional achievement represented in producing and loading the 3,000th shipment of liquefied gas from Qalhat in the state of Sur to Japan.
He added that this comes as the first effort of the Oman LNG Company in the locomotive decommissioning project, which plays a pivotal role in enhancing productivity.
He pointed out that the company has strengthened its position as a contributor to global energy security and a reliable supplier of liquefied gas, and signed the first binding clauses agreement with 3 Japanese companies with the aim of delivering gas starting in 2025.
Al-Awfi explained that despite the challenges he witnessed in 2022; Oman LNG has maintained its position as a reliable supplier of LNG. As the gradual recovery from the Corona crisis contributed to the continuation of the company’s success stories, and the factory’s work efficiency reached 97.6%.
He stressed that the company is working on implementing a number of sustainability projects that are in line with the national goals to reach carbon neutrality by 2050.
For his part, the CEO of the company, Hamad Al-Numani, said that the year 2022 witnessed a remarkable increase in annual revenues amounting to $ 5.77 billion; which confirms its flexibility and commitment to achieving excellence in performance, while continuing to simplify expenditures; This allows the company to maintain its position in the field of operations of liquefied natural gas assets.
He explained that the company’s record of the highest production in its history confirms its strategic efforts to increase production capacity and operational efficiency, with the implementation of the locomotive decommissioning project, which achieved better results, indicating that the marketing strategy led to achieving profitable sales by improving the portfolio and close cooperation with its customers to ensure access to the main markets. all over the world.
He added that while the company maintained the trust of its trading partners, it was able to open new markets in Europe and Asia.
Omani liquefied gas exports
Omani liquefied gas exports achieved their highest level in 2022, with volumes reaching about 11.3 million tons, according to a report by the Organization of Arab Petroleum Exporting Countries (OAPEC) – a copy of which was obtained by the specialized energy platform.
The success of the Sultanate of Oman in achieving the unprecedented number of liquefied natural gas exports came thanks to the completion of the bottleneck removal project from the Qalhat terminal, which began recently to raise its production capacity to 11.5 million tons annually.
During the year 2022, shipments of Omani liquefied gas reached many destinations in various regions of the world, such as South Korea, Japan, Pakistan and Thailand in Asia, and Spain, Italy and France in Europe, in addition to Turkey, which received for the first time a shipment of Omani gas in November. 2022.
The following infographic, prepared by the specialized energy platform, monitors the destinations reached by Omani LNG shipments in 2022:
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