Page 15 - DMEA Week 28 2021

DMEA FUELS DMEA

TotalEnergies Nigeria urges Abuja

to invest in gas transport options

AFRICA A representative of France’s TotalEnergies has optimised in such a way that cargo rail is consid-
urged Nigeria’s government to explore multiple ered in the rail network, so that a lot of pressure
options for the transportation of natural gas. can be taken off the road [and] that these cargo
Maryam Shehu, the general manager of rails can transport the LNG [and] CNG from one
administration for deepwater projects at location to the other,” she said.
TotalEnergies Nigeria, noted at an industry Shehu further stressed that her company
conference last week that Abuja was investing supported Abuja’s efforts to promote domes-
heavily in infrastructure as it moved ahead with tic consumption of gas. To date, subsidiaries of
domestic gasification initiatives. She also recom- TotalEnergies have signed three supply agree-
mended, though, that the government work to ments within the framework of this programme,
open up road and rail transport routes, as well she said.
as pipelines. She also reported, though, that implementing
In some locations, she said, the best way to these agreements had been difficult. Since Nige-
bring gas to consumers is to use trucks instead ria has not yet fully developed its gas value chain,
of pipelines. This may be especially true, she suppliers have a hard time finding takers for
remarked, for stranded assets – that is, for gas their product, she stated. In turn, she said, lack
fields that are too small to justify the construc- of demand makes upstream operators reluctant
tion of pipeline branches. to invest in gas production.
In these cases, she said, the government These problems can only be resolved if steps
should focus on building and maintaining roads are taken to expand the market for gas, she
that are strong enough to support truck traffic. argued. This may involve raising awareness of gas
Tanker trucks that are capable of carrying LNG and gas-derived fuels among potential custom-
are heavy and can cause damage to roads that are ers or offering industrial organisations incentives
not reinforced, she noted. to switch to gas, she said.
She also urged Abuja to expand the scope of If demand rises, production will rise, she
its railway development and rehabilitation pro- added. “What is quite critical is that the demand
gramme to include LNG and CNG cargoes, as for gas has to increase to be able to increase pro-
well as passengers. duction or to enable the fact that a lot of invest-
Doing this would help reduce the amount ments that have been made in the upstream
of stress on the national road network, she segments of the value chain will be recouped in
explained. Nigerian railways “should be time,” she explained.™

PETROCHEMICALS

Bechtel to build Egyptian

petchem complex

AFRICA US construction giant Bechtel will lead the which according to the Egyptian government
design and construction work for a $7.5bn pet- will be the largest of its kind in Africa.
rochemicals complex to be built for state-owned Red Sea National Refining and Petrochemi-
Red Sea National Refining and Petrochemicals cals Company and Bechtel are expected to sign a
Company in the Ain Sokhna industrial zone Service Level Agreement for the project in early
under two agreements signed with the petro- August, the statement said. Bechtel, Technip and
leum ministry over the weekend, the ministry Saipem have already assisted the Egyptian Pet-
said in a statement. rochemicals Holding Company (ECHEM) in
The agreements will see the US company conducting preliminary studies for the project,
working alongside state-owned Petrojet and while Bechtel is said to also be securing funding
Enppi on the project management, engineering from unnamed international institutions for the
design services and construction of the facility, execution of the project.™

Week 28 15•July•2021 www. NEWSBASE .com P15