Page 11 - AfrElec Week 18

AfrElec GAS-FIRED GENERATION AfrElec
W-Industries to provide subsea support services to Mozambique LNG
MOZAMBIQUE
FRANCE’S Total has chosen Texas-based W-In- dustries as its contractor for subsea support services related to the non-downstream compo- nents of the $20bn Mozambique LNG project.
W-Industries said in a statement last week that it had been awarded the contract by Total E&P Mozambique Area 1, a subsidiary of the French major. It did not disclose the value of the deal, but it did say that it would be responsible for the engineering, manufacturing, automation, integration and testing of the subsea equipment that Total E&P Mozambique Area 1 will use to develop Golfinho, one of the natural gas-bearing areas within the offshore Area 1 licence.
To this end, the statement explained, W-In- dustries will supply two onshore subsea support equipment modules (OSSEMs) to Total E&P Mozambique Area 1.
These modules will include integrated elec- trical and instrumentation buildings, an MEG injection system, a methanol injection system, a subsea production hydraulic power unit and an independent chemical injection skid with a fully integrated local process control and safety system, it said.
Donnie Smith, CEO of W-Industries, called the contract a “significant milestone” for his company. “Through the combination of our core products, advanced engineering capabilities and process automation expertise, we are able to deliver a fully integrated, turn-key module in support of the Mozambique LNG project,” he commented.
New sub-contractor In related news, Total’s main contractor for the construction of the Mozambique LNG plant struck an agreement a 50:50 joint venture formed by Mota-Engil (Por- tugal) and Besix (Belgium). Mota-Engil unveiled the deal last week, saying that the venture had won a contract worth $365mn from CCS, an alliance formed by Chiyoda (Japan), McDermott (US) and Saipem (Italy).
The contract calls for Mota-Engil and Besix to build a pier bridge and an off-loading facility for the gas liquefaction plant that will use gas from Golfinho and other sections of Area 1 as feed- stock. The partners hope to begin work before the end of June and will take 32 months to finish construction.
Total E&P Mozambique Area 1 has a 26.5% stake in Mozambique LNG and serves as oper- ator of the project. The remaining equity is split between Mitsui (Japan), with 20%; Bharat Petro- leum (India), with 15%; Beas Rovuma Energy Mozambique (a 60:40 joint venture between ONGC Videsh Ltd (OVL) and Oil India Ltd, or OIL), with 10%; Mozambique’s national oil company (NOC) ENH, with 10%; and PTTEP (Thailand), with 8.5%.
The partners have said they hope to begin extracting gas at Area 1 in 2024. They will pro- cess gas from the site at an onshore facility that will have two production trains, each with a capacity of 6.44mn tonnes per year (tpy). The plant will be Mozambique’s only onshore gas liq- uefaction facility.™
FUELS
Rwandan fuel importers run out of storage
RWANDA
THE Rwanda Association of Petroleum Prod- ucts Importers (RWAPI) is reportedly pressing the government to help its members transfer excess fuel supplies to privately owned storage depots.
Joseph Akumuntu, RWAPI’s executive secre- tary, told The New Times last week that many Rwandan importers had found themselves with more fuel than they could sell, after officials in Kigali introduced restrictions designed to curb the spread of the coronavirus (COVID-19) out- break. The excess volumes are now stranded in parked trucks, the newspaper said.
“Importers ordered this fuel about two months before COVID-19 [hit],” Akumuntu explained. “By the time it got here, the lockdown had already been imposed. This means that the
storage facilities are full because consumption levels have since dropped by 80%.” The supply glut is a financial burden, as well a logistical challenge, he stated. Rwandan fuel importers are contractually obligated to pay demurrage fees of $100 per day to the owners of the tanker trucks they use whenever they fail to meet deadlines for loading or unloading their cargoes on schedule, he said.
RWAPI hopes the government will help its members by offering a tax concession, he said.
Currently, he noted, importers have an incen- tive to transfer their fuel into the storage depots overseen by the Rwanda Revenue Authority in Gatsata, Jabana, Kabuye and Rusororo.
Companies that do so are able to delay pay- ment of taxes on their fuel until they collect
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