(Alliance News) - Shell PLC on Monday signed an agreement to extend its partnership with Oman LNG LLC beyond 2024.

The Anglo-Dutch oil and gas major said under the agreement its subsidiary Shell Gas BV would remain the largest private shareholder in Oman LNG, with a 30% shareholding, and continue its role as technical adviser.

Oman LNG has in turn signed various agreements to secure its gas supply until 2034.

"Shell is proud of its role as the largest private shareholder, off-taker and technical adviser in Oman LNG," said Zoe Yujnovich, Shell's integrated gas and upstream director.

"We believe liquefied natural gas's role in the energy system will continue to grow, and this milestone further demonstrates our commitment to our integrated gas business and to Oman as a key heartland to Shell," she added.

In addition, Shell International Trading Middle East FZE will purchase up to 1.6 million tonnes per year of liquefied natural gas from Oman LNG from 2025 to 2034, making Shell the largest LNG off-taker from Oman LNG.

Oman LNG is one of the largest investment projects in Oman, operating a three-train plant with production capacity of 11.4 million tonnes of liquefied natural gas per year.

In addition to its investment in Oman LNG, Shell holds a 34% stake in Petroleum Development Oman and a 49% holding in Shell Oman Marketing Co.

Shares in Shell closed down 0.4% at 2,719.00 pence in London on Monday.

By Jeremy Cutler, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

Copyright 2023 Alliance News Ltd. All Rights Reserved.