Page 19 - AsianOil Week 46

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In related news, the Nigeria LNG (NLNG) con- The second phase will utilise spare capacity
sortium has said it expects to raise the volume of at the subsea infrastructure already being devel-
LPG reserved for the domestic market to 450,000 oped for the first phase, Inglis explained. Rather
tonnes in 2021, up from current levels of 350,000 than requiring a new floating production storage
tonnes per year (tpy). The increase is in line with and offloading (FPSO) unit, the first-phase ves-
the federal government’s efforts to promote the use sel will instead be expanded. A second gas export
of LPG as cooking gas, said Tony Attah, NLNG’s line from the FPSO to the hub terminal will also
managing director. no longer be required.
Meanwhile, the government of Ghana has “As a result, we believe phase two will be
reportedly ordered Eni of Italy to unitise the off- the most competitive brownfield LNG expan-
shore Sankofa field with Afina, a licence area sion project globally,” Inglis said, “with limited
assigned to a private Ghanaian company, Spring- upstream capital requirements expected to be
field Exploration and Production. In a letter viewed less than $1bn gross to first gas.”
last week by Bloomberg, Energy Minister John-Pe- Breakeven costs for this LNG are projected
ter Amewu said that his ministry was issuing this to come to just above $4 per mmBtu for Asian
demand because the two companies had failed to deliveries and even less for European ones,
work out a joint plan for development, in line with thanks to the lower capital costs.
previous instructions from Accra. Over in the UAE, national oil company (NOC)
Further west, a new investor is set to join the ADNOC said on November 9 it intended to start
consortium that is developing the Sangomar oil- trading refined products in December through its
field offshore Senegal. Australia’s FAR Ltd said joint venture with Italy’s Eni and Austria’s OMV.
last week that it had agreed to sell its 15% stake ADNOC Global Trading (AGT) is 65%-owned
in RSSD to India’s ONGC Videsh Ltd (OVL) for by ADNOC, 20% by Eni and 15% by OMV. The
$66.58mn, with the possibility of further pay- recently-formed venture began derivatives trad-
ments following the start of production. The pro- ing in September with a focus on crude oil. It had
ceeds of the deal will allow FAR to make up for its hoped to launch trading operations in the second
failure to pay its own share of expenses over the quarter of this year, but the coronavirus (COVID-
last few months. 19) pandemic led to delays.
“Next month, we will begin trading the full
If you’d like to read more about the key events shaping portfolio of our refined products,” ADNOC CEO
Africa’s oil and gas sector then please click here for Sultan al-Jaber said at the ADIPEC conference.
NewsBase’s AfrOil Monitor. ADNOC has global ambitions for AGT.
“The plan is to grow into Singapore, Europe and
DMEA: BP downsizes GTA plans potentially gain a presence in the US,” ADNOC’s
BP and other investors in the Greater Tortue director for marketing, supply and trading said
Ahmeyim (GTA) LNG project offshore Senegal at the conference. “We start with a [1mn barrel]
and Mauritania have scaled back their expansion refinery behind us, and the relationship with
plans in order to reduce costs, Houston-based [Vitol Tank Terminals International] allows us
partner Kosmos Energy has said. access to locations all over the world.”
The project’s second phase was expected to raise
liquefaction capacity from 2.5mn tonnes per If you’d like to read more about the key events shaping
year (tpy) to 10mn tpy. Reporting its third-quar- the downstream sector of Africa and the Middle East,
ter results, though, Kosmos said the expansion then please click here for NewsBase’s DMEA Monitor.
would add only 2.5mn tpy, bringing the total to
5mn tpy. Europe: UK drilling slump
The revised capacity represents “the sweet UK crude oil and natural gas production is slated
spot for leveraging all the major infrastructure to fall this year as drilling slumps to its lowest
from phase one,” Kosmos CEO Andy Inglis told level since the 1970s, Oil and Gas UK (OGUK)
investors in an earnings call. warned in a report on November 11.

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