Oman said to consider LNG imports: Report

Oman is considering importing liquefied natural gas (LNG) to meet growing domestic demand for electricity, potentially becoming the fourth state in the Gulf to import LNG, Bloomberg reported, citing two unnamed sources.

Oman exports LNG under long-term contracts to Spain and several Asian countries including Japan and South Korea.

LNG imports would supplement Oman’s current supply by pipeline from Qatar. Oman and Iran are discussing a route to import natural gas from Iran, Mohammed Al-Rumhy, Oman’s oil minister, said on April 14.

Natural gas consumption in Oman surged to 774 billion cubic feet in 2013 from 520 billion cubic feet in 2009, according to the U.S. Energy Information Administration.

Spare production capacity at Oman LNG LLC, which operates the country’s facilities for liquefying gas for export, reached its highest level since 2006 last year, Bloomberg said citing Oman’s annual reports.

Oman produced 7.95 million tons of the fuel in 2014 from plants with an annual capacity of 10.4 million metric tons, Oman LNG said in its latest annual report.

Kuwait and the United Arab Emirates increased LNG imports by 47 percent in 2014 from the previous year, according to the International Group of Liquefied Natural Gas Importers.