[2] The company's production facilities are located on the coast at Qalhat near Sur in the South Sharqiyah Governorate, Oman.

In January 1992 the government of Oman accepted a preliminary feasibility study by Royal Dutch Shell and signed a memorandum of understanding for the establishment of a first LNG project.

[3] In June 1993 a shareholders' agreement between the Government of Oman (51%), Royal Dutch Shell (30%), Total S.A. (5.54%), Korea Gas Corporation (5%), Partex (2%), Mitsubishi (2.77%), Mitsui (2.77%) and Itochu (0.92%) was signed.

[4][6] As location for the LNG plant Qalhat, near Sur, was chosen in 1995, being bolstered by the signing of the first Sales and Purchase Agreement (SPA) with Korea Gas Corporation in October 1996.

[4][3][5][6] In January 2002 the company was granted a US$1.3 billion loan from a consortium of banks in order to refinance the original debt.

[12][13][14] In 2008 and 2009, the train utilization averaged at around 80% for the first time since the plant had struggled to find enough supply due to increased domestic demand caused by the industrial expansions and strong population growth.

This shortage continued, and LNG exports also averaged around 8 million tonnes a year from 2010–2012, leaving around 20–25% of the plants capacity idle.

[15][16][17] In 2010, Oman LNG had to shut down all operations for a short period due to problems resulting from Cyclone Phet.

Following a year-long process of negotiations and complex international involvement, Oman signed the final 25-year gas export deal with Iran only months later.

[22][23][24] In 2015, again due to problematic increases in domestic demand and resulting in a gas shortage for the liquefaction plant, Oman LNG had to reschedule five to ten percent of all exports.

[28][29] In 2018, Oman LNG signed a SPA with BP Singapore, detailing a seven-year delivery of 1.1. million tonnes per year, beginning in January 2018.

In addition, the plant employs Air Products' AP-C3MR technology and has two storage facilities capable of holding 240,000 cubic metres (8,500,000 cu ft) of LNG.