Page 11 - AfrOil Week 44 2022

AfrOil PROJECTS & COMPANIES AfrOil

Shell and the other parties have not said where the LNG hub will be built (Screenshot from SuezCanal.gov.eg)

The statement did not say when the partners of natural gas as a lower-carbon fuel, he added.
hoped to finalise an agreement on the project For another, he noted, the proposed joint
nor reveal the estimated value of the deal. Nei- venture will be able to source LNG from both
ther did it disclose the projected timeline for the of Egypt’s gas liquefaction plants. (The minis-
establishment of the new bunkering hub. ter was referring to the fact that because Shell
It did comment, though, that LNG bunker- operates Egyptian LNG, a 7.2mn-tonne per
ing was likely to prove a good opportunity for year (tpy) facility at Idku, while EGAS is a share-
Egypt. Petroleum Resources Minister Tarek holder in SEGAS LNG, the 5mn-tpy Damietta
El-Molla was quoted as saying in the statement facility.)
that Egypt’s government was supporting the As of press time, Shell had not confirmed the
project for multiple reasons. ministry’s announcement on the signing of the
For one thing, the country already handles LoI. When contacted by LNG Prime, the mul-
a great deal of shipping traffic by virtue of its ti-national said it had no comment on the matter
advantageous geographic position as the opera- at this stage.
tor of the Suez Canal, he explained. Demand for EGAS and the other Egyptian companies
LNG is rising in the marine sector, and Egypt’s have also not spoken publicly about the LNG
government support efforts to expand the use bunkering project. ™

NNPCL, Daewoo E&C sign LoI on

Kaduna refinery rehab project

AFRICA NIGERIAN National Petroleum Co. Ltd rehabilitation project. This puts the value of the
(NNPCL) has reached agreement with Daewoo Kaduna deal at nearly $1bn.
E&C, a unit of South Korea’s Daewoo Group, on As of press time, it was not clear when the
the rehabilitation of the Kaduna oil refinery. South Korean company might begin work
According to reports from Nigerian press on the 110,000-barrel per day (bpd) Kaduna
agencies, representatives of NNPCL and Dae- refinery, which sustained losses of NGN22.9bn
woo signed a letter of intent (LoI) on the reha- ($51.99mn) in 2021. Nigerian officials did say,
bilitation of that refinery in Seoul on October though, that the parties expected to sign a final
27. Nigerian President Muhammadu Buhari agreement on the rehabilitation project in the
witnessed the signing, which took place on the first quarter of 2023.
sidelines of the 2022 World Bio Summit. They also noted that the Warri refinery was
NNPCL is awarding the refinery repair and due to resume fuel production in the first half
upgrade contracts to Daewoo E&C in line with of next year. (The plant will then ramp up to
decisions made last year by Nigeria’s Federal full capacity by the end of 2023, according to
Executive Council (FEC), which functions as Desmond Iyanmah, the managing director of
Buhari’s cabinet. The FEC said in August 2021 NNPCL subsidiary Warri Refining and Petro-
that it would set aside $1.48bn in budget funds chemical Co.)
to cover the cost of rehabilitating the Warri and Buhari expressed satisfaction at the signing
Kaduna plants. of the LoI, noting that the new project would
Daewoo E&C has already secured a final allow the South Korean company to expand its
contract worth about $492mn for the Warri operations in Nigeria.

Week 44 03•November•2022 www. NEWSBASE .com P11