Oman LNG has completed the first phase of the design for the third train, which will raise output to 9.9 million tonnes per year (tpy) from the current 6.6 million tpy. General manager Graeme Searle said discussions had been held with Japan, South Korea, Taiwan and India and the company had entered into a preliminary tender with China.

"The plant can be extended to three more trains, but we're taking one train at a time and if the market justifies it then we will build the other trains," said Searle. "We would also certainly be looking to buying ships to export LNG as part of our expansion plans and we are not ruling out a second plant either."

Searle said Oman LNG did not consider the Sultanate's gas producing neighbours as rivals. "We don't consider Iran or Yemen as rivals for our expansion plans ... It is cheaper for us to expand than for them to build a plant from scratch. We also don't see Qatar as a rival and we have mutual co-operation with it. Besides, the LNG market is large enough and the demands are increasing all the time." Oman's LNG project - the biggest single construction project ever undertaken in Oman at a cost of $2.5 billion, took nine years to develop from the initial discovery of natural gas in 1991 to first cargo exported. The construction of the Qalhat plant, near Sur town, contributed to well over $400 million of business for local companies and employed over 1,000 young Omanis.

The start of operations for Oman LNG heralded a new chapter in Oman's gas development. The first consignment went to Korean Gas Corporation (Kogas) in April 2000, and it will continue to receive Oman LNG shipments until 2024 at the rate of 4.1 million tpy. The Kogas deal was a major milestone in the achievement of the LNG project, reinforcing its financial viability. Long-term agreements have also been signed with Osaka Gas of Japan and Dabhol Power Company of India. Oman LNG is an integral part of Oman's Vision 2020 and spearheads the country's programme towards a diversified and dynamic economy. Oman's Undersecretary for Oil and Gas Salim bin Mohammed Shaban said: "The impact of the project will help diversify the economy and make it depend less on oil. This is the starting point of other gas-based projects scheduled to happen in the next few years. We intend that by the year 2020 the contribution of the gas sector to GDP will be not less than 10 per cent." The Omani government holds 51 per cent of the shares with the Royal Dutch Shell Group holding 30 per cent. The remainder is with TotalFinaElf of France, 5.54 per cent; Korea LNG, 5 per cent; Mitsubishi and Mitsui, both Japanese, 2.77 per cent each; Partex of Portugal, 2 per cent, and Itochu, Japan, 0.92 per cent.