Essay 7150EXQ: Research Project – The Impact of Liquid Natural Gas (LNG) in Oman – Economics Assignment Help

Assignment Task:

The impact of Liquid Natural Gas (LNG) in Oman 

Background of the Study

The natural gas industry has been undergoing major transformations all over the world. The increase in natural gas production added to the international context greater supply and reduced prices, point to a future in which gas tends to gain preponderance in the energy mix as has been happening in various countries because of the requirements and international environmental agreements (Fu et al., 2017). Since gas is a fuel that contributes to the transition to a cleaner energy matrix (Feng and Dong, 2019). The sector has room to expand and capacity to attract an average of $32 billion in investments. 

Oman Liquefied Natural Gas LLC (Oman LNG) is a joint venture established by a Royal Decree in 1994 and operates under the laws of the Sultanate of Oman. The country has natural reserves of gas at Khazzan. Oman LNG’s liquefaction plant is located on the coast at Qalhat near Sur in the South Sharqiyah Governorate and its head office is in Muscat. In October 1996, Oman LNG signed a sale and purchase agreement with Korea Gas Corporation to supply liquefied natural gas for 25 years starting in April 2000. Under this agreement, 1.6 million tons per year will be sold to the company for a period of 20 years.