Marsa LNG Achieves Key Construction Milestone: What This Means for Investment and Business Growth in Oman
MUSCAT, FEB 28 — Marsa LNG, the joint venture developing a 1 million tonnes per year LNG bunkering hub at SOHAR Port and Freezone, has reached a major construction milestone in the $1.6 billion project— the first of its kind in the region.
The partnership, comprising TotalEnergies (80%) and OQ Exploration & Production (20%), announced that last week the roof of a critical LNG storage tank was successfully installed in a highly complex operation.
Houston-based CB&I, a global leader in tank and terminal storage solutions and a McDermott subsidiary, carried out the “air-raising” technique. This engineering process involved using compressed air to carefully lift and position the fully assembled steel roof atop the tank wall. The operation lifted 631 tonnes of steel approximately 40 metres high with precise control.
“This technical achievement represents a significant advancement for the project,” the joint venture said. “It reflects meticulous planning, strong teamwork, and excellent health, safety, and environmental performance by Marsa LNG LLC and CB&I.”
CB&I holds the engineering, procurement, and construction (EPC) contract for the 165,000 cubic metre full-containment concrete LNG storage tank and related piping. Technip Energies serves as the EPC contractor for the overall bunkering hub.
By the end of 2025, overall construction progress had reached about 39%, according to OQ Exploration & Production (OQEP). An important milestone during the year was the signing of a Natural Gas Sales Agreement with Integrated Gas Company (IGC) to supply 150 million standard cubic feet per day (mmscfd) of gas from Block 10—the source of Marsa LNG’s gas equity—for the bunkering facility. OQEP holds a 20% direct and indirect interest in Block 10, operated by Shell.
“OQEP benefits from a dual revenue stream from Block 10: gas sales and LNG sales from the upcoming Marsa LNG bunkering hub, the region’s first,” the publicly traded upstream energy company, part of OQ Group, stated in its 2025 financial report.
The Marsa LNG bunkering hub is expected to be commissioned between the second and third quarters of 2028.
Special Analysis by Omanet | Navigate Oman’s Market
The successful milestone in Marsa LNG’s $1.6 billion bunkering hub project at SOHAR marks a strategic leap for Oman’s position in regional LNG supply and maritime fuel services. For businesses, this development opens new opportunities in energy logistics and maritime industries, while smart investors should consider the dual revenue model from LNG sales and gas supply as a promising avenue amid growing energy demands. However, careful monitoring of construction progress and regulatory environments remains crucial to mitigate project execution risks.
