On 30th of June 2004, ITOCHU Corporation and Qalhat LNG signed a long-term LNG supply agreement (which has since been novated to Oman LNG).
Qalhat LNG has a production capacity of nearly 3.7 million tonnes of LNG per year. The plant started operations in December 2005 and currently supplies LNG to Europe and Asia. The Qalhat LNG project is mainly owned by the Government of the Sultanate of Oman. It is the second LNG project in Oman, with the first LNG project being Oman LNG, which started LNG production in 2000.
Under the agreement, Qalhat LNG will supply ITOCHU Corporation with about 700,000 tonnes of LNG per year starting from 2006 for a period of 20 years. Under this agreement, which is on an FOB basis, ITOCHU Corporation is responsible for arranging for an LNG vessel to lift the LNG cargoes. Through this agreement, ITOCHU will be able to utlize its trading capabilities to participate in the trading of LNG, thus contributing to the stable supply of LNG around the world.