Page 6 - DMEA Week 11 2020

DMEA COMMENTARY DMEA
Work inches forward on
Mozambique LNG, Coral
South FLNG
New contracts awarded for services related to the Mozambique LNG and Coral South FLNG projects mark steps forward for both facilities in an increasingly uncertain market
MOZAMBIQUE
WHAT:
Contracts have recently been awarded for services related to both the Mozambique LNG and Coral South FLNG projects.
WHY:
Construction is proceeding on both facilities, with completion expected within the next four years.
WHAT NEXT:
Mozambique’s further LNG prospects look
more uncertain in an increasingly oversupplied market.
A contract awarded last week by the engineer- ing, procurement and construction (EPC) con- sortium working on Mozambique LNG marks another step forward on the facility’s construc- tion. The consortium, known as CCS JV and comprising affiliates of Saipem, McDermott and Chiyoda, has selected Air Products to provide two LNG heat exchangers.
The coil-wound main cryogenic heat exchangers (MCHEs) will be manufactured at Air Products’ facility in Port Manatee, Flor- ida, and then shipped to the project site on the Afungi Peninsula in Cabo Delgado, Mozam- bique. The MCHEs, which use proprietary Air Products technology, will operate at the Mozam- bique LNG site as part of two separate liquefac- tion trains, with a combined capacity of around 13mn tonnes per year (tpy).
“We have been tasked with building the first onshore LNG export facility in Mozambique and one of the most efficient facilities in the LNG space,” CCS JV’s chairman, Roberto Uberti, said in a statement. “We are carefully selecting reliable and experienced technology providers and under this perspective the benefits of Air
Products involvement are clearly consistent.” Uberti’s comments come as efficiency becomes an ever greater priority for the oil and gas industry in an increasingly challenging oper- ating environment. With oil prices tumbling and a global glut of LNG being exacerbated by shutdowns related to the coronavirus (COVID- 19) pandemic, the duration of which remains unknown, any competitive advantage has become even more essential. Mozambique LNG is due to come online in 2024 – by which point the glut is anticipated to ease – but even beyond the challenging short term, mega-projects are set
to increasingly prioritise efficiency.
Mozambique LNG progress
The Air Products contract is the latest to be handed out in relation to the Mozambique LNG project, development of which is being led by France’s Total. In late February, the French company awarded two master service agree- ments (MSAs) to Australia’s Worley. The MSAs cover in- and out-of-country services, includ- ing consulting and specialist engineering for the delivery of onshore and offshore facilities in
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w w w . N E W S B A S E . c o m Week 11 20•March•2020