EXPANDING OPPORTUNITIES
With its potential as a clean fuel for maritime shipping, LNG usage is expected to grow, even in spite of the global downturn.
BIOGRAPHY
Harib Al Kitani is CEO of OLNG and Qalhat LNG. He brings over 36 years of experience in the oil and gas industry where he has held senior positions in operations, marketing, business development, and in large-scale project development in numerous countries. Al Kitani is a board member of various institutions and companies. He holds a bachelor's in chemical and biochemical engineering from the University of Birmingham in the UK and a master's in business administration from the University of Warwick, the UK.
What were the main highlights for Oman LNG in 2019, and how do they reflect the strategy for 2020?
The 2019 was challenging but rewarding. First, we achieved 35 million man hours without injuries, which is record-breaking. Second, our production was the highest ever since the start of the company, thanks to our strategic projects and efficiency-driven operation. We have started ambitious projects to increase efficiency and embarked on a gas-engine power project, instead of the open-cycle plant. With our engines just arrived from Europe, we now have nine gas engines. Our new engines, commissioned to start at the end of 2020 or early 2021, will boost our efficiency in power generation from 23% to 46%, making us the first LNG company globally to employ gas engine technology. In addition, we have our plant rejuvenation program to extend our plant's life for another 30 years. We also started producing cargo from the debottlenecking of the plant project, set to be completed by 2021.
How do you expect the demand side of the market to evolve?
In Japan, LNG imports are expected to gradually decrease in the longer term as further nuclear capacity restarts and solar takes some share of energy supply. As such, we compete with the US, Australia, and Qatar, who have increased production. In the meantime, many traders are entering the market and creating confusion with the supply-demand balance and prices. Fortunately, over the last 20 years, we have made strong relationships in the markets and still have clients who prefer to buy directly rather than through traders. On top of that, the China-US trade war and COVID-19 have impacted LNG markets. Therefore, we are currently navigating many risks, while demand from new markets, such as Bangladesh, is not large enough to offset the challenges of East Asia. That being said, we are almost sold out until the end of our concession, while the debottlenecking production is already in the market and receiving a good response.
How do you expect the LNG gas market partnerships to evolve domestically and internationally?
The gas market in Oman is not fully developed, although the government has changed its strategy recently to hedge its risks. Traditionally, the upstream sector had to sell to the government; today, we are expected to use gas to create value-added products and export them, forming an integrated project. We now have gas-to-liquid (GTL) projects with Shell, as well as Total for small-scale LNG bunkering, and more to come with ENI and BP. However, the local market does not pay as well as the international market. LNG usage locally is being developed through Total's small-scale bunkering aimed at developing LNG as fuel for maritime transport. This is a growing sector where LNG provides cleaner and more cost-competitive fuel for shipping; but LNG as fuel for road transport has yet to evolve significantly in many sectors. Locally, we continue to uphold value through building growth opportunities for local organizations leveraging OLNG, such as Oman Shipping Company.
Where do you expect technological upgrades to improve your processes and plans?
Our digital transformation journey will go hand-in-hand with our partner, Shell, and is based on predictive maintenance or predicting when our assets need intervention before they break down. We have obtained thermal predictive data for columns to see when and how the thermal map is changing, giving us foresight on when the process requires change. We are currently doing incident root cause analysis with technology that fast-tracks massive data analysis to enable engineers to pinpoint symptoms and faults faster. We are also looking at automating multiple operations with AI that will enable our staff to focus on different tasks while machines will take care of others. Finally, we continue to adapt our facility's technology to the ever-changing landscape of Oman Gas Grid in order to maximize value. We continue to be agile with upstream development and are preparing ourselves for potential mixed gas blends when upcoming upstream development comes to fruition.
EXPANDING OPPORTUNITIES
TABLE OF CONTENTS
Focus: Future foreign policy
Friends to all, enemy to none
In championing the late Sultan Qaboos' non-interference foreign policy, the new ruler of Oman, Sultan Haitham bin Tariq Al Said, is determined to work for friendship and peace, justice and harmony, and coexistence and positive constructive dialogue.
read articleInterview
David Kalife, CEO, Oman Oil Marketing Company (OOMCO)
Despite Oman's fuel market slowing down, OOMCO increased its sales volume of lubricants by 36% in 2019 and is constructing a greenfield bunker terminal at the Port of Duqm. The company has transformed while growing its expertise in Marketing and Digital.
read articleInterview
Azzan Al Busaidi, CEO, Ithraa
Azzan Al Busaidi is an expert in competitiveness and economic growth. He was appointed CEO of Ithraa in 2019 after 17 years spent covering managerial roles in the organization. Al Busaidi was previously Ithraa's director general of planning and studies and is a strong advocate of the potential of digitization. He holds an MBA from the University of Strathclyde and a BSc in Economics from Sultan Qaboos University.
read articleInterview
Qais bin Mohammed Al Yousef, Minister of Commerce, Industry & Investment Promotion & Former Chairman, Oman Chamber of Commerce and Industry
Private Omani companies will be able to benefit greatly from the Fourth Industrial Revolution by enhancing their local value-added strategies and upskilling the workforce.
read articleInterview
Tahir Bin Salim Bin Abdullah Al Amri, Executive President, Central Bank of Oman (CBO)
The Central Bank of Oman's job is to ensure there is adequate liquidity in the system and that banks remain robust and resilient to meet the credit requirements of all segments without undermining financial stability.
read articleB2B
Capital markets
CMA and MSM are supporting Vision 2040 by providing financing to government companies that intend to go public, financing expansion of existing and new IPOs, and widening the investors base in Oman by enhancing and developing the investment funds and insurance industries.
read articleInterview
Khalid Al Balushi, CEO, Khazaen Economic City
International investors and business owners can benefit from Khazaen Economic City's strategic location and its close proximity to the main gateways of the country to import, process, manufacture, distribute locally, and export their goods and services.
read articleFocus: Port 4.0
Destined for greatness
Investments in world-class infrastructure have generated huge rewards for Oman. The goal now is to leverage technology as a disruptive enabler, build human capacity across the public and private logistics sectors, and drive operational efficiencies to build an integrated logistics business environment that is benchmarked against the world's best.
read articleFocus: Gap in tourism services
All bases covered
An amalgamation of local companies and unique experiences in Oman has created an original flavor that is further differentiating Oman's tourism offering from other countries and in the process attracting scores of tourists from all across the world.
read articleB2B
Engineering design
Renardet Engineering Consultants and Design Unit Engineering are recognized experts in their fields. While the former is an international company strongly committed to excellent engineering consultancy services and environmental practices, the latter is an Oman-based team of architects and engineers that incorporates local culture and traditions.
read articleB2B
Construction materials
Oman's construction sector is facing a host of challenges, but Hempel Paints and Al Maha Ceramics are confident that a mix of forward-thinking business models, unique products, and strong government initiatives will help them through turbulent times and generate positive returns in the long run.
read articleInterview
Salim Razvi, CEO, Oman Academic Accreditation Authority (OAAA)
Focusing on higher education institutional accreditation, program accreditation, and the updating and maintaining of the Oman Qualifications Framework, OAAA is helping further advance higher education in the Sultanate.
read article