Shell has signed two agreements to increase its hydrogen operations in Oman.
Oman’s Ministry of Energy and Minerals, OQ and Oman LNG have inked agreements with Shell for the production of Liquefied Synthetic Gas (LSG) from hydrogen and carbon dioxide.
The LSG can be used in existing gas networks and infrastructure owned by Oman LNG as a low-carbon alternative.
OQ and Shell have also signed a partnership agreement to develop green hydrogen capacity in Oman after acquiring a 35% stake in the Green Energy Oman (GEO) project.
GEO is run by OQ, Intercontinental Energy, Enertech, and Golden Wellspring Wealth for Trading and has been in progress since 2018. Expected to be developed in phases, it’s expected to generate around 1.8 million tons of green hydrogen once at full capacity.
Under the agreement, Shell will act as the operating partner following its 35% equity holding acquisition.
“The entry of Shell to this vital project constitutes a qualitative step that will enable the consortium to benefit from their advanced global expertise in this field,” said Najla Bint Zuhair Al-Jamili, CEO of Alternative Energy at OQ.
Walid Hadi, Senior Vice-President and Country Chair of Shell Oman, commented, “We are pleased to sign these important agreements that will strengthen our partnership with the Sultanate of Oman.”
“With our entry to the Green Energy Oman (GEO) consortium, we are taking a further step to advance lower and zero emissions energy projects in Oman. The project remains in its early phase, but this is a sign of the potential we see for Oman through the energy transition,” Hadi added.