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Sun 20 Mar 2016 02:35 PM

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Oman says reschedules 5% of its 2016 LNG exports due to shortage

Rising domestic demand for power generation is hurting the Sultanate’s export revenues

Oman says reschedules 5% of its 2016 LNG exports due to shortage
(Photo for illustrative purposes only)

Oman is rescheduling about five percent of its liquefied natural gas (LNG) shipments in 2016 as rising domestic demand for power generation is impacting the amount of gas available for exports, a senior company officials said on Sunday.

Oman is seeking to industrialise rapidly to provide jobs and diversify its economy beyond oil, but these plans could be delayed if gas supplies do not keep up with surging demand for power generation.

Nearly all of Oman's gas exports go to Japan and South Korea. In 2014, Oman exported as LNG about 375 billion cubic feet (Bcf) of natural gas, according to the US Energy Information Administration.

Last year, Oman said some of its LNG supplies due to be delivered in 2015 would be rescheduled over the coming years because of domestic shortages.

"We are rescheduling around five percent of our LNG exports this year too due to shortage in gas," Harib Al Kitani, Chief Executive of Oman LNG told Reuters.

Oman LNG is 51 percent owned by the Omani government and its shareholders include Shell and Total.

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