Page 12 - DMEA Week 23 2021

DMEA TERMINALS & SHIPPING DMEA

Tanzania reports progress

in talks on LNG project

AFRICA TANZANIA’S government is reportedly mak- facility will process gas from three deepwater
ing progress in talks with Equinor (Norway) offshore sites containing about 35 trillion cubic
and Royal Dutch Shell (UK/Netherlands) on feet (991bn cubic metres) – Block 2, assigned to
the resumption of work at an LNG project worth Equinor, and Blocks 1 and 4, assigned to Shell –
$30bn. as feedstock for LNG production.
According to Minister of Energy and Min- Tanzania’s government suspended talks
erals Medard Kalemani, the parties are moving on the LNG project in late 2019 in response to
closer to a deal on the Tanzania LNG scheme. then-President John Magufuli’s demand for
“We expect to conclude negotiations for a host a review of the country’s production-sharing
government agreement [HGA] and review pro- regime. Magufuli had intended to resume dis-
duction-sharing agreements [PSAs]” by June 30, cussions late last year, after Tanzania’s presiden-
2022, he told members of the country’s parlia- tial election. However, this decision to wait did
ment last week. not pay off; Magufuli did win another term, but
If this deadline is met, Equinor and Shell he did not return to the matter of Tanzania LNG
should be able to start building an LNG plant in before his death in March 2021.
Lindi, a port in the southern part of the coun- His successor, Samia Suluhu Hassan, has
try, in 2023 and wrap up construction about five taken a different approach, saying she wants to
years later, Kalemani said. Tanzanian authorities push the long-delayed project forward. In April,
have already finalised plans for compensating Hassan urged Tanzania’s Ministry of Energy and
about 600 residents of Lindi for the land that will Minerals to wrap up negotiations on the $30bn
be used for the project, he added. LNG project as quickly as possible. She also said
When finished, the Tanzania LNG plant that her administration was willing to seek out
will have two or three production trains with a other partners if negotiations with Equinor and
capacity of 5mn tonnes per year (tpy) each. The Shell were not successful.™

World Bank loan for Mombasa LPG terminal

AFRICA INTERNATIONAL Finance Corp. (IFC), an The terminal will offer direct berthing ser-
arm of the World Bank, has reportedly agreed vices for many sizes of LPG carriers, including
to lend a Kenyan fuel company about $23mn for large vessels, he noted. It will be able to transfer
the construction of the first phase of a new LPG LPG from ships to tanker trucks and rail tankers
terminal. for onshore transport to local sellers, who will in
Mombasa Gas Terminal (MGT) made an turn be able to deliver the fuel to residential and
announcement to this effect last week, reporting business users, he said.
that it had secured the credit deal with the IFC Riungu went on to say that the terminal pro-
after obtaining regulatory approval for the pro- ject was in line with the Kenyan government’s
ject from Kenya’s national government and also Big Four agenda, which aims to promote domes-
from district authorities. “We confirm that we tic manufacturing, improve healthcare, enhance
have received a facility from the World Bank for food security and support affordable housing
the KES2.5bn ($23mn) Phase One of our bulk initiatives through reticulated gas supply net-
LPG import and storage terminal,” said Julius works. Additionally, he said, the terminal will
Riungu, the managing director of MGT. support Nairobi’s efforts to make access univer-
“This project will underpin Kenya’s ambitious sal to modern cooking fuels that are safer and
goal for sustainable economic development,” less polluting than wood and charcoal by 2030.
Riungu commented. “We are aiming to complete Currently, MGT noted, more than 93% of
construction of Phase One and begin operations Kenya’s rural households rely on charcoal and
within six months.” wood for cooking.
The first phase of the terminal will be able to Switching to LPG will help curb deforest-
store 22,000 tonnes of LPG, he added. With this ation, it said, adding that Kenya’s government
amount of storage capacity, the facility will be aimed to bring the share of forested land to 10%
able to handle a total of 400,000 tonnes per year of the country’s territory, up from the current
(tpy) of LPG, he said. level of 7%.™

P12 www. NEWSBASE .com Week 23 10•June•2021