Page 9 - GLNG Week 07 2021
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GLNG COMMENTARY GLNG
offshore in waters 2,500 metres deep. Equinor up sometime in the late 2020s, but the project
has complained before about “large underwater faces considerable competition from a number
canyons” that make offshore activity challeng- of other suppliers anticipated to bring more
ing. The envisaged plan is to connect the discov- capacity online in the next decade, including in
eries via pipeline with onshore facilities north of Africa.
Lindi. About 90% of the gas would be liquefied Neighbouring Mozambique has several pro-
and exported, while the remainder would be jects in the pipeline. First and foremost, there is
delivered to the domestic market. the Total-led Mozambique LNG, due to start up
Equinor has already invested considerable in 2024 and ramp up to a full capacity of 13mn
amounts in Tanzania – more than $2bn by its tpy. Eni’s 3.4mn tpy Coral FLNG is on track for
latest estimate. But it has not been able to get first gas in 2022, and there is also ExxonMobil’s
the LNG project off the ground, amid years of unsanctioned 15.2mn tpy Rovuma LNG project
regulatory delays and wrangling with the gov- to consider. All told, there is
ernment over investment terms. All told, there is around 26mn tpy of LNG
capacity in sub-Saharan Africa that has been around 26mn tpy
A crowded market sanctioned and is under development, adding of LNG capacity
Negotiations over TLNG were halted by the gov- to 33.8mn tpy of existing supply spread across
ernment in mid-2019, to allow a review of Tan- Angola, Cameroon, Equatorial Guinea and in sub-Saharan
zania’s PSA regime. The outcome of this review Nigeria, according to a recent report by the
is yet to be announced. Equinor’s licence for the African Coalition for Trade and Investment Africa that has
TLNG discoveries has already expired but is in Natural Gas (ACTING). Besides Total and
expected to be renewed. Eni’s projects in Mozambique, other approved been sanctioned
Casting greater doubt on the project, con- ventures include the Nigeria LNG’s seventh and is under
ditions on the global gas market have altered train and BP’s floating LNG (FLNG) scheme in
greatly over the past year. Whatever Equinor’s Mauritania/Senegal. development.
target was for lowering the project’s breakeven ACTING estimates that Rovuma LNG and
cost to make it feasible before the pandemic will other unsanctioned projects in the region could
now have been altered significantly. The com- yield a further 74mn tpy of LNG supply. And
pany has estimated TLNG’s cost before at $20bn. outside Africa, there is also rising supply in the
Equinor has said it will continue talks with US, Russia and Qatar to consider. The latter
Tanzania’s government in the hope that com- just took a final investment decision (FID) on a
mercial, fiscal and legal terms can be worked 23mn tpy expansion project at the North Field,
out that would make the project viable. Tanza- which is sure to make other suppliers more hes-
nia has said in the past it expects TLNG to start itant about signing off on new investments.
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