Natural Gas Daily Middle East & East Mediterranean LNG
Oman plans to import LNG and coal at Duqm16 May 2017
As a long-time exporter of LNG, Oman’s plan to import LNG and coal at the port of Duqm on the Arabian Sea may seem odd. However, the move is being driven by the need to supply energy to the isolated port’s rapidly developing industrial zone rather than a lack of gas.
Oman has developed and is expanding energy-intensive industries at its main ports, including Duqm. Duqm’s electricity needs are currently met by diesel-fuelled generators as the port is not connected to the main gas network, which is run by Petroleum Development Oman (PDO). However, the port’s rising demand for energy has prompted Oman to look for alternatives.
The country is considering mooring an FSRU, but although imported LNG may be cheaper than diesel, it will still be more expensive than the Omani regulated gas price.
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