Page 4 - GLNG Week 08 2022

GLNG COMMENTARY GLNG

Eni and Brazzaville eye

gas export prospects

The Italian major has unveiled plans for installing 2mn

tpy of LNG production capacity in the Republic of Congo’s

offshore zone

PROJECTS & THE Republic of Congo (ROC) is mostly known though, Eni said it wanted to speed up work on
COMPANIES as a source of crude oil, but it also possesses sub- a project that would allow ROC to monetise a
stantial reserves of gas – at least 10 trillion cubic much larger share of its gas by opening up access
WHAT: feet (283bn cubic metres) of gas as of the end of to the world market.
Eni CEO Claudio Descalzi 2021, according to official data. This is enough to More specifically, the company’s CEO, Clau-
says associated gas from make its reserves the seventh-largest in Africa, dio Descalzi, told analysts during a conference
Marine XII fields may be but much of the total has consisted of associated call that Eni was fast-tracking a plan to establish
used to produce LNG as gas that developers have re-injected into offshore two flexible, modular LNG production facilities
early as next year. oilfields in order to maintain reservoir pressure. in the offshore zone. One of the facilities will
In other words, ROC hasn’t done much be built near the shore and the other offshore,
WHY: to develop gas for its own sake. But that may and both will process associated gas from fields
The Italian major’s change, according to Italy’s Eni, a major investor within the Marine XII block, he explained.
ambitions align with the in ROC’s offshore zone. Together, Descalzi added, the two units will
government’s Gas Master be able to turn out around 2mn tonnes per year
Plan (GMP). Eni’s fast-track plan (tpy) of LNG. Eni hopes to begin production in
For the last several years, the Italian major 2023 and will sell Congolese LNG on the spot
WHAT NEXT: has been providing significant volumes of gas market, he added.
ROC is likely to face some from fields within the Marine XII block to two
challenges along the path onshore thermal power plant (TPPs), known as Gas Master Plan
towards becoming a gas Central Électrique du Congo (CEC) and Central The Eni CEO did not comment on the cost of
exporter. Électrique du Djeno (CED), for use in electricity this undertaking, name any potential partners
generation. These two TPPs already account for or offer further details about his company’s
a super-majority of ROC’s power production, intentions.
with CED, which is owned 20% by Eni, making It’s reasonable to assume, though, that Brazza-
up 60-70% of the total on its own. ville will support the Italian major’s plans. What
These gas supply initiatives are important for Descalzi described is in line with the Gas Mas-
the Congolese economy, but they are not nec- ter Plan (GMP) that the Congolese Ministry of
essarily major sources of revenue. Last week, Hydrocarbons drafted last year in co-operation

P4 www. NEWSBASE .com Week 08 25•February•2022