Shell signs green hydrogen pact in Oman

Energy major Shell has signed an agreement with Oman’s OQ to develop a green hydrogen project in the Middle Eastern country, Oman News Agency reported on January 10.

Shell International has acquired a 35% shareholding interest in Green Energy Oman (GEO) project, which is expected to be developed in multiple phases to produce around 1.8mn metric tons/year of green hydrogen at full capacity.

The GEO project is located in the southern region of Oman in Al Wusta and Dhofar governorates. Partners in the project are OQ, green fuels developer InterContinental Energy, and Kuwaiti state-backed clean energy developer EnerTech. 

Shell also signed a letter of intent with Oman’s ministry of energy and minerals to explore opportunities for the production of liquefied synthetic gas (LSG) in the country.

LSG is produced when green hydrogen is combined with captured carbon dioxide to produce natural gas which is then liquefied. This low-carbon gas can be directly introduced to existing gas networks and infrastructure, including the LNG stations of the Oman LNG Company, all the way to the end user, the news agency said.

“With our entry to the Green Energy Oman consortium, we are taking a further step to advance lower and zero emissions energy projects in Oman,” Walid Hadi, senior vice president and country chair of Shell Oman, said. “The project remains in its early phase, but this is a sign of the potential we see for Oman through the energy transition. We also look forward to working together with the ministry of energy and minerals to explore the sustainable development of the first integrated liquefied synthetic gas value chain.”

Shell signed an LNG offtake agreement in Oman as well. Oman LNG will supply 0.8mn mt/yr of LNG to Shell starting 2025.