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Oman LNG awards pre-feed contract for pilot methanation plant

24 June 2025

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Oman LNG has awarded Japan-based Kanadevia Corporation a contract to perform pre-front-end engineering and design (pre-feed) work for a pilot methanation plant, and a detailed concept study for future commercial scaling of the facility.

The proposed facility is expected to produce 18,000 normal cubic metres of e-methane an hour.

The pre-feed will focus on the pilot plant, while the concept study will cover technical and commercial evaluations.

The pilot plant will comprise three components: a seawater desalination unit, equipment for producing hydrogen via water electrolysis and a methanation system that combines hydrogen with captured carbon dioxide to produce e-methane.

During the pre-feed phase, Kanadevia will conduct detailed design studies and cost estimations for engineering, procurement and construction.

The agreement follows a memorandum of understanding that Oman and Japan signed in March 2024, covering collaboration in hydrogen, fuel ammonia and carbon recycling. 

“The project aligns with Oman’s target of achieving net-zero emissions by 2050 through the adoption of clean energy solutions such as carbon capture and utilisation and methanation,” the Oman News Agency said in a report.

Oman LNG operations

Oman LNG is a joint venture of the sultanate’s Energy & Minerals Ministry, which holds the majority 51% stake, and foreign stakeholders.

The remaining 49% is held by UK-based Shell (30%); France’s TotalEnergies (5.54%); South Korea’s Korea LNG (5%); Japanese firms Mitsubishi Corporation (2.77%), Mitsui & Company (2.77%) and Itochu Corporation (0.92%); and Thailand’s PTTEP, following the acquisition of Portuguese firm Partex (2%).

Oman LNG operates three trains at its site in Qalhat, with a nameplate capacity of 10.4 million tonnes a year (t/y). Due to debottlenecking, the company’s production capacity has gradually increased to about 11.4 million t/y.

Oman LNG secured $2bn-worth of project financing in 1997 to set up its first liquefied natural gas (LNG) export terminal in the sultanate, the Qalhat LNG terminal, which was commissioned in 2000.

From 1 September 2013, Qalhat LNG was integrated with Oman LNG to form a single entity.

The terminal exports gas produced by state oil and gas producer Petroleum Development Oman from its central Oman gas field complex. Oman LNG’s customers are mainly based in Asia, although the company has been expanding its client base outside the continent in recent months.

In April, Oman LNG announced it had started turnaround activities at the third LNG processing train, which has an output capacity of 3.3 million t/y. The third train commenced operations in 2006 and mainly processes gas produced at the Saih Nihayda field in central Oman.

ALSO READ: Contractors line up for Oman LNG fourth train project

READ THE JUNE 2025 MEED BUSINESS REVIEW – click here to view PDF

Gulf accelerates AI and data centre strategy; Baghdad keeps up project spending, but fiscal clouds gather; Banking stocks rise despite lower global oil prices

Distributed to senior decision-makers in the region and around the world, the June 2025 edition of MEED Business Review includes:

> GULF PROJECTS INDEX: Gulf projects index leaps 4.3%
To see previous issues of MEED Business Review, please click here
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Indrajit Sen

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