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Africa takes the lead in record-year for LNG
Africa is taking the lead in the next phase
of global LNG mega-projects. 2019 will shatter previous records for the industry. Rystad Energy forecasts that LNG green eld investment in 2019 will reach nearly $103 billion, the biggest investment year for the burgeoning industry to date.
Mozambique’s Area 1 and Area 4 projects, the latter of which is expected to secure a nal investment decision (fID) from operator ExxonMobil by the end of the year, are making Africa the dominant LNG investment destination this year, with nearly one-third of total green eld investment.
“Last week’s nal investment decision by Anadarko for its Area 1 LNG project marks the beginning of a new phase for not only Mozambique and the African continent, but for the industry as a whole,” says Pranav Joshi, analyst on Rystad Energy’s Upstream team.
e green eld capex for the Area 1 project is estimated at $15.6 billion, putting the project in the same league as the major LNG developments in the US, Russia and Australia. If ExxonMobil’s Area 4 does indeed reach fID this year, that will represent another $14.7 billion in green eld expenditure in Africa, bringing the yearly total to 28% of the global tally for approved investments in newly sanctioned LNG projects.
“Area 1 is the largest LNG project that has been sanctioned in Africa to date and will also kick start the wave of sanctioning activity of other bigger LNG projects this year,” Joshi added.
Rystad EnERGy, june 27, 2019
amERiCas
Venture Global LNG raises
$675mn of additional
capital
Venture Global LNG announces that it has raised $675mn of additional capital from world-class institutional investors. e
capital will be used primarily for the further development of the company’s 20 million tonnes per annum (mtpa) Plaquemines
LNG export project in Plaquemines Parish, Louisiana. In addition to the $855mn of capital previously raised at Venture Global LNG and the $1.3bn project-level equity commitment from Stonepeak Infrastructure Partners for the company’s Calcasieu Pass LNG project, Venture Global LNG has now raised total committed capital of over $2.8bn to support the development of its LNG export facilities.
Co-CEOs Mike Sabel and Bob Pender jointly stated, “With the expansion of our Plaquemines LNG sales and purchase agreement (SPA) with PGNiG to 2.5 mtpa and in anticipation of additional near-term commercialisation, we are excited to add signi cant new resources as we prepare to commence early works at Plaquemines later this year.”
e 20 mtpa Plaquemines facility will employ a comprehensive process solution from Baker Hughes, a GE company (BHGE) that utilises highly e cient mid-scale, modular, factory-fabricated liquefaction trains in an identical con guration to its Calcasieu Pass LNG project, currently under construction in Cameron Parish, Louisiana. e final Order for Plaquemines LNG
from the US federal Energy Regulatory Commission (fERC) is currently scheduled to be issued no later than August 1, 2019. vEntuRE GloBal lnG, june 27, 2019
API encourages US-China trade talks to continue
API released the following statement on the Administration’s decision to postpone the imposition of additional tari s under Section 301 on $300bn worth of imports from China:
“We are encouraged to see progress in U.S.-China trade negotiations,” said API’s Senior Advisor for International Policy Aaron Padilla. “It shows that the Administration recognizes that further escalating the trade dispute with China would cause more collateral damage to the American economy, businesses, and consumers. We encourage both parties to continue negotiations and
to quickly agree on a trade deal that would eliminate all tari s under Section 301.”
aPi, june 29, 2019
Okra marks small-scale milestone in Peru
Okra Energy (USA) marks a signi cant milestone with the production and delivery
of more than three million gallons of LNG produced by its proprietary technology at its small-scale natural gas liquefaction facility, the rst in Perú. e modular and scalable LNG plant installed in Piura is the rst such facility in the country and one of only ve in all of Latin America, enabling the regions’ natural gas energy reserves to be tapped and utilized even where no pipeline infrastructure exists.
e facility’s output represents the majority of the LNG available to the country’s northern regions and nearly 20% of the available LNG supply for the nation overall. e entirety
of Okra Energy’s LNG production has
been presold, with subsequent liquefaction trains under contract. Pending contracts
for additional plants by Okra Energy re ect the manufacturing sector’s demand in Latin America for safe and clean-burning natural gas, as well as for reductions in operating and transportation costs. One such bene ciary
of Okra Energy’s Peruvian supply of LNG is Siderperú, a division of Gerdau, the largest long steel manufacturer in Latin America.
By transitioning from CNG to LNG in order to supply its Chimbote facility, Siderperú achieves a signi cant reduction in operating expenses, as well as an environmentally bene cial 60% reduction in the number
of daily fuel deliveries needed to support
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Week 26 04•July•2019