• 3 hours Russia, Saudis Team Up To Boost Fracking Tech
  • 9 hours Conflicting News Spurs Doubt On Aramco IPO
  • 10 hours Exxon Starts Production At New Refinery In Texas
  • 11 hours Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 1 day Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 1 day Oil Gains Spur Growth In Canada’s Oil Cities
  • 1 day China To Take 5% Of Rosneft’s Output In New Deal
  • 1 day UAE Oil Giant Seeks Partnership For Possible IPO
  • 1 day Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 1 day VW Fails To Secure Critical Commodity For EVs
  • 1 day Enbridge Pipeline Expansion Finally Approved
  • 1 day Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 1 day OPEC Oil Deal Compliance Falls To 86%
  • 2 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 2 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 2 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 2 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 2 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 2 days Aramco Says No Plans To Shelve IPO
  • 5 days Trump Passes Iran Nuclear Deal Back to Congress
  • 5 days Texas Shutters More Coal-Fired Plants
  • 5 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 5 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 5 days Chevron Quits Australian Deepwater Oil Exploration
  • 6 days Europe Braces For End Of Iran Nuclear Deal
  • 6 days Renewable Energy Startup Powering Native American Protest Camp
  • 6 days Husky Energy Set To Restart Pipeline
  • 6 days Russia, Morocco Sign String Of Energy And Military Deals
  • 6 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 6 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 6 days India Needs Help To Boost Oil Production
  • 6 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 6 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 6 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 6 days District Judge Rules Dakota Access Can Continue Operating
  • 7 days Surprise Oil Inventory Build Shocks Markets
  • 7 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 7 days Syria’s Kurds Aim To Control Oil-Rich Areas
  • 7 days Chinese Teapots Create $5B JV To Compete With State Firms
  • 7 days Oil M&A Deals Set To Rise
Oil Prices Rise Amid Falling U.S. Rig Count

Oil Prices Rise Amid Falling U.S. Rig Count

Oil prices inched higher on…

Is The Aramco IPO On The Brink Of Collapse?

Is The Aramco IPO On The Brink Of Collapse?

Conflicting news suggests that Saudi…

Oman Gas Projects Could Undermine U.S. LNG Market Ambitions

Two separate projects in the sultanate of Oman are about to turn the tiny Gulf country into an important international liquefied natural gas (LNG) player that the U.S. will have to contend with in its ambition to become the leader of this market.

The first one is an agreement with Iran for the construction of a 400-kilometer pipeline that will transport Iranian natural gas to be liquefied at the three-train processing facility of Oman LNG.

Related: The Current Oil Price Rally Is Reaching Its Limits

The plant has an annual capacity of 10.4 million tons of LNG, of which 1.5 million tons is spare and will be used for the liquefaction of Iranian gas. The gas will then be shipped to Asian and European markets.

The second project is BP Oman’s development of shale gas in the Khazzan field. The company recently announced that it has passed the 65 percent mark towards the project’s completion and the gas will start flowing by the end of 2017.

When the Khazzan project comes on stream, Oman’s natural gas reserves will automatically rise by as much as 40 percent. These reserves were estimated by BP at 24.9 trillion cubic feet at the end of 2014.

Related: Russia Under Threat From U.S. Natural Gas

Iran, on the other hand, has the largest reserves of natural gas in the world—again according to BP estimates. The country has 1,201.4 trillion cubic feet of proven reserves that it will aim to start developing as quickly as possible, now that the sanctions are off, along with oil.

The news provides food for thought for U.S. gas companies that are currently investing in LNG processing and export terminals on a considerable scale in a bid to move away from the saturated domestic market and find new ones with stronger demand.

As we wrote earlier, the U.S. is already in for stiff competition on the LNG market from Australia, which just saw the completion of the largest and most expensive LNG project in the world, Chevron’s Gorgon LNG. Add to that Oman’s plans to become a key player in the gas field, and an already bleak picture will only become bleaker. Even Australian projects are running into trouble. Woodside just announced its decision to scrap the $40 billion Browse LNG project in Australia. Related: New Biofuels Alternative Could Upend Oil Markets

For the time being, the U.S. gas producers have no useful move. They can’t drop their work on the terminals, whatever it costs, in order to stay in the game, even if they will not be able to profit from it for a while.

As for Oman’s ambition to become a big gas player, with Iran’s reserves to count on, it seems a pretty likely prospect.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News