Oman is a well-established exporter of LNG, a position the country wants to maintain because the sales are a major source of revenue. However, the sultanate’s rising domestic demand for gas means it needs greater supplies of the fuel. Consequently, although plans to import gas via pipeline from countries such as Iran are on the agenda, Oman has also been reinforcing measures to boost its non-associated gas production.
Oman already relies heavily on non-associated gas production to meet its growing domestic demand and to fulfil its LNG export obligations, a trend that is likely to intensify over the coming years. Oman produced 39.15 billion cubic metres of gas in 2016, an increase of just over 25% from its output in 2010. While the country’s associated gas output increased by less than 1 bcm between 2010 and 2016, its non-associated production rose by almost 7 bcm. GGA forecasts Oman’s overall gas production will increase by an average of 4% year on year between 2017 and 2020. Most of the extra supply will come from the country’s non-associated acreage.
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