Page 10 - DMEA Week 16 2020

DMEA TRANSPORT DMEA
Mozambique LNG on hold after COVID-19 outbreak
MOZAMBIQUE
The project is a hotspot for COVID-19 cases.
CONSTRUCTION has been halted at the Total- led Mozambique LNG project following an out- break of coronavirus (COVID-19).
There are 41 confirmed cases of COVID-19 in Mozambique as of April 22, the government esti- mates. The bulk of them have been traced back to the onshore liquefaction plant.
“It’s difficult to predict how the situation will evolve,” Total told Agence France-Presse last week, noting that up until now work had been proceeding on schedule. “At the project site we are focused on critical activity, including secu- rity, logistics and forward planning.”
The $20bn project in northern Mozambique is due to come on stream by 2024. It will produce almost 13mn tonnes per year (tpy) of super- cooled gas at peak capacity, using the Golfinho and Atum gas fields in the offshore Rovuma Basin as its resource base.
Total operates Mozambique LNG with a 26.5% stake, while its partners are Japan’s Mit- sui E&P with 20%, India’s ONGC Videsh Ltd (OVL) and BPRL Ventures Mozambique, each with 10%, local players ENH Rovuma and Beas Rovuma Energy Mozambique, with 15% and
10% respectively, and Thailand’s PTTEP with 8.5%.
According to Total, the first COVID-19 case was identified on April 1 and since then a large number of workers have been tested for the virus. A “small proportion” tested positive. Total and its contractors have “progressively moved to temporarily reduce the number of personnel at the project site in collaboration with the Minis- try of Health,” to “minimise the risk of further transmission.”
Total and its partners have also assisted Mozambique in upgrading local medical facili- ties in the province, providing personal protec- tive equipment, ventilators and test kits.
The outbreak comes as a further setback for Mozambique LNG. Adding risk to the project and others nearby, there has been an increase in the scale and frequency of attacks by insurgents linked to the Islamic State in the area over the past month.
ExxonMobil recently postponed a final investment decision (FID) at the neighbouring $30bn Rovuma LNG project, in light of the oil price collapse. ™
PETROCHEMICALS
Saipem wins deal for Egyptian rubbers plant
ITALY
The polybutadiene rubbers plant is Egypt’s first.
SAIPEM has bagged a contract to build Egypt’s first polybutadiene production facility, the Ital- ian contractor announced on April 17.
The deal, worth $150mn, was awarded by Egyptian Ethylene & Derivates Co. (Ethy- dco) to a joint venture between Saipem and local firm Petrojet. The pair’s work will cover detailed engineering design, procurement and supply of equipment and materials, construc- tion, pre-commissioning, commissioning up to start-up and performance testing.
Polybutadiene is a synthetic rubber with a high resistance to wear. It is primarily used in the manufacture of tyres, which accounts for 70% of its global consumption. The new plant will be capable of producing 36,000 tonnes per year (tpy) of the product.
Saipem has a long history of working in Egypt. In particular, it was involved in the devel- opment of the giant Eni-operated Zohr gas field in the Mediterranean. Zohr was brought on stream in 2017, just over two years after its discovery.
“Aftersuccessfulcompletionofthefast-track
Zohr project, this award confirms Saipem as a partner of choice to support the sustainable development of Egypt,” the Italian firm’s chief operating officer for onshore engineering and construction, Maurizio Coratella, said in a statement.
Egypt is looking to advance a series of new petrochemicals projects, exploiting its resources to help meet growing domestic demand for plas- tics, polyesters and other key goods.
The government is in talks with US firm Bechtel to construct a $6.7bn refining and pet- rochemical complex in the Suez Canal economic zone. State-owned Egyptian General Petroleum Co. (EGPC) has also entered into a pact with Chevron to co-operate in petrochemicals and other areas.
A group of investors from Saudi Arabia, the UAE and Kuwait have also announced $6.8bn of projects. Many of these investments still need finalising, however. Approvals could be some way off, amid unprecedented global economic uncertainty as a result of the COVID-19 pan- demic. ™
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