Page 15 - GLNG Week 50 2020

GLNG AFRICA GLNG

Disruptions in Algeria add to market tightness

PERFORMANCE IN Algeria, the port of Arzew, which is home to The disruptions in Algeria come as unplanned
the GL3Z LNG complex, had been at a stand- maintenance at other liquefaction plants around
still for about 10 days as of December 11 owing the world has helped eat into the global over-
to bad weather, according to a source cited by supply of LNG, pushing up spot prices to their
Bloomberg. highest level in around two years. But even with
At least two LNG vessels were idled near the strengthening prices, Sonatrach has not been
port, the news service reported on December offering any cargoes to the spot market, leading
11, adding that one of them – the Lalla Fatma traders to speculate that the company has limited
N’Soumer – had been there since December 1, volumes available to sell.
according to in-house ship-tracking data. Sonatrach has not publicly commented on
This is the latest in a series of setbacks for the the issue. However, Algeria is reported to be
GL3Z LNG plant. Bloomberg cited LNG traders seeking to increase its gas supplies to Europe
as saying Algeria had already been struggling – both gas and LNG – over the coming year,
with separate export issues since late summer, as competition for the European market
and GL3Z LNG had not exported a cargo since intensifies.
mid-August. In the longer term, meanwhile, the North
State-owned Sonatrach, which operates the African country has warned that its gas exports
export plant, had increased flows via pipeline could fall sharply unless it is able to offset exist-
to Southern Europe, the news service cited two ing production declines, as well as meet growing
traders as saying. domestic demand.™

ExxonMobil, Vopak weigh up

South African LNG project

PROJECTS & EXXONMOBIL has teamed up with Dutch Vopak has been working in South Africa for
COMPANIES infrastructure operator Royal Vopak to poten- 25 years and operates a terminal in Durban that
tially build an LNG regasification terminal in brings ashore petroleum products and chemi-
South Africa. cals. It also has interests in LNG regasification
The pair have signed a memorandum of projects in the Netherlands, Mexico, Pakistan
understanding (MoU) on the project, cover- and Colombia.
ing a joint feasibility study to assess its com- South Africa currently lacks LNG import
mercial, technical and regulatory aspects. capacity, instead relying on domestic gas supply
The pair will also evaluate what infrastruc- and piped imports from Mozambique. But these
ture South Africa needs in order to harness supplies are dwindling as fields both in South
the benefits of LNG as a reliable, low-cost and Africa and Mozambique grow mature. Author-
clean energy source. Vopak noted that the ities have warned that gas shortages could lead
country could reap this benefit by repurpos- to the closure of state-owned Sasol’s Mossel Bay
ing older coal-burning power plants, convert- gas-to-liquids (GTL) refinery, which produces
ing peaking power stations and using LNG in motor fuels.
industry. South Africa also wants to expand the role
“ExxonMobil is excited to work with Vopak of gas in its energy mix in order to reduce its
to evaluate innovative approaches to bring com- dependence on coal, which supplies more than
petitive LNG projects to South Africa,” Exxon- 90% of its electricity. The government’s latest
Mobil LNG market development president Irtiza electricity infrastructure development plan
Sayyed commented. “As a gas industry leader envisages an expansion in gas-fired generation
with strategic access to LNG supplies around the by 1,000 MW by 2023 and 2,000 MW by 2027.
world, ExxonMobil is well-positioned to supply But coal is anticipated to remain a dominant
cleaner, reliable energy to power South Africa in source of energy, given the country’s abundant
the future.” reserves of the fuel.
“Our collaboration with ExxonMobil will Besides LNG, authorities are also counting
allow us to leverage our global expertise and on South Africa’s offshore gas resources to help
experience to develop resilient and efficient LNG boost supply. France’s Total has made two signif-
infrastructure for South Africa,” Vopak LNG icant discoveries at offshore Block 11B/12B in as
President Kees van Seventer added. many years.™

Week 50 18•December•2020 www. NEWSBASE .com P15