Oman LNG Plans Production Increase

Oman LNG will likely ramp up its LNG output by 20% in next four to five years, Reuters reported citing a company official.

The company, which produces around 8 million tonnes of LNG a year, is anticipating new tight gas reserves to come onstream over the next 2 to 3 years, Brian Buckley, chief executive of Oman LNG, said on the sidelines of a gas conference in Malaysia, Reuters said.

"We expect to be able to utilise our spare capacity of around 1.5 to 2 million tonnes (per year) sometime between 2016 and 2017," Buckley said. "That is when we see the domestic supply situation easing, mainly because of additional gas coming onstream."     

The newswire agency said that BP is expected to make a final decision on proceeding with a $15 billion investment in Oman's Khazzan tight gas project by the end of 2012.

The Khazzan tight gas project could potentially have up to 100 trillion cubic feet of gas in its reserves, but it was still too early to say just how much of that would be realised at production.