Page 4 - AfrOil Week 01 2021

AfrOil COMMENTARY AfrOil

(Photo: Eni)

Two approaches to LNG

Projects in Mozambique and Mauritania appear to be gaining headway, but their sponsors are following

different strategies, with one favouring vertical integration and the other approaching LNG as a service

AFRICA’S natural gas sector is finishing 2021 projects. This essay offers a brief view of each
and starting 2022 on a hopeful note, with two project and compares these angles.
WHAT: LNG projects at opposite ends of the continent
Coral South LNG’s FLNG making forward progress. Coral South LNG
has arrived at Area 4, The two projects in question are Coral South As noted above, Eni and its partners in Coral
while NFE has signed an LNG offshore Mozambique and an as-yet South LNG were reportedly set to see the Coral
MoU with Mauritania on a unnamed initiative offshore Mauritania. With Sul FLNG vessel arrive at their licence area off-
proposed energy hub. respect to Coral South, the Eni-led consortium shore Mozambique earlier this week.
was reportedly set to take delivery of the Coral The unit has been in transit since November,
WHY: Sul, the floating LNG (FLNG) vessel that will when it was completed at the Samsung Heavy
The two projects are process gas from the Area 4 block, as of January Industries (SHI) shipyard in South Korea.
illustrative of long-term
shifts in approaches to 5. This was slated to occur about two weeks after According to Mozambique’s National Institute
LNG deals. US-based New Fortress Energy (NFE) revealed of Petroleum (INP), the FLNG arrived in the
that it had signed an agreement with the gov- Rovuma basin, which is home to Area 4 and
WHAT NEXT: ernment of Mauritania on the creation of an off- the other offshore licence areas that have been
NFE’s smaller-scale, shore energy hub that will include an LNG plant. assigned to the consortia that have pledged to
modular, flexible strategy Both developments are significant, as they invest at least $50bn in major Mozambican LNG
is likely to become more will help to open up new offshore production schemes, on January 3. It was on track to arrive
widespread. basins. They also serve to illustrate the different at its operating site on January 5, according to
angles at which investors can approach FLNG AIS data from VesselsValue cited by LNG Prime.

P4 www. NEWSBASE .com Week 01 05•January•2022