Page 12: of Offshore Engineer Magazine (Jan/Feb 2023)

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MARKETS SUB-SAHARAN AFRICA FLNG

SUB-SAHARAN

AFRICA FLNG

Uniquely Positioned to meet European LNG Demand

By Obo Idornigie, VP for Upstream Research, Welligence Energy Analytics ven as investment into new energies increases, steel was cut at Wison Heavy Industry’s yard in January for the global hunger for gas is growing. It’s pay- a second vessel (2.4 MMtpa), destined for the same Eni day for producer countries, and companies are project (start-up in 2025).

revisiting gas discoveries that have been classed UÊ iÜÊ«À?iVÌÊÃ>?VÌ???ÃÊ??ÊÓäÓÎ\ It’s not just Eu-

E as “stranded” for many years. The emergence of Floating ropean E&Ps looking at FLNG – ExxonMobil is carefully

LNG (FLNG) provides a means of monetizing these for- studying its options for Area 4 in Mozambique. While merly unwanted ?nds. The shorter cycle times and lower there is more than enough gas to support an onshore liq- capex can give FLNG technology an edge over tradition- uefaction plant, appetite to sanction such a development ally much larger onshore liquefaction developments. One is uncertain due to the scale of investment required and region where the FLNG solution is building real momen- long payback periods. We therefore believe the US Major tum is Sub-Saharan Africa (SSA). is likely to go down the FLNG path, at least initially.

After Golar’s 2.4 MMtpa Hilli Episeyo vessel started up in Another key project that may receive FID this year is

Cameroon in 2018, Eni ?red up the region’s second FLNG phase two of bp’s GTA in Mauritania/Senegal. Both this, vessel (the 3.4 MMtpa Coral Sul) last year in Mozambique. and Area 4 in Mozambique, can comfortably support 20-

Several new projects are expected to start-up over the next year 3.5 MMtpa LNG supply contracts. Golar has ear- few years, as gas resource holders pursue relatively short- marked the Gandria LNG carrier for conversion to a 3.5 cycle and low-cost access to global markets, particularly the MMtpa vessel. The project location is uncertain at this hungry European market which lies in close, relative prox- stage, but Golar is con?dent it will online by 2025.

imity. Our analysis of pro-posed projects highlights that the

Sub-Saharan Africa LNG/FLNG projects cost-stacks are well below expected European gas prices pre- 2030, but at similar levels over 2030-2035 – quick start- UÊ/?iÊ?iÝÌÊL?}Ê}>ÃÊ«>ÞÊqÊ/>?â>??>\ÊThe East Afri- ups are therefore vital to capture the opportunity. can country, lying immediately north of Mozambique, is working to get its 30+ Tcf gas resource monetised, but we don’t see any near-term rush from the likes of Equinor and

Sub-Saharan Africa becoming a focal point

Shell to build an onshore facility. They may prefer to go for FLNG activity

Two new projects are expected online this year. Golar down the FLNG path.

will provide the 2.45 MMtpa Gimi FLNG vessel to bp UÊ-?>?Ü?Ü>ÌiÀÊ}>ÃÊ??Ê ?}iÀ?>Ê>?`Ê>L??\ There and phase one of its Greater Tortue Area (GTA) project are several stranded 2-3 Tcf gas discoveries across the two in Mauritania/Senegal, while Eni acquired Exmar’s 0.6 countries. These ?elds could utilise small FLNG vessels like

MMtpa Tango FLNG unit and will deploy it on its Nene the Hilli Episeyo. Alternatively, they could be candidates

Marine project in Congo-Brazzaville. Furthermore, ?rst for New Fortress Energy’s Fast LNG solution. One project 12 OFFSHORE ENGINEER OEDIGITAL.COM