Page 7 - GLNG Week 01 2023

GLNG COMMENTARY GLNG

Facilitating GTA exports Awaiting Yakaar-Teranga
The thing to remember is that GTA Phase I is Additionally, the deliveries of LNG to the FSRU
an export-oriented project. Its operator has not will also serve the concrete purpose of provid-
made the necessary arrangements to deliver part ing Senelec with gas for its thermal power plants
of its production to shore for use in power pro- (TPPs) during a period when the utility is wait-
duction, and it would likely prefer not to revamp ing for new domestic gas resources to become
its plans (or its budget) at this late date, so close available.
to the deadline for first gas. GTA is not, after all, the country’s only
Likewise, BP may see gas exports as a more gas-bearing site; Senegal’s offshore zone is also
likely source of revenue than domestic power home to an offshore block known as Yakaar-
generation in Senegal. Global energy prices Teranga. This block is slated to begin yielding
may now be lower than they were a year ago, gas in 2024, and its operator – BP, once again – is
prior to the Russian invasion of Ukraine, due to looking to deliver part of its future production to
unseasonably warm weather in Europe. How- shore for domestic use. What’s more, it has been
ever, market volatility is still enough of a factor talking about building a pipeline to pump gas to
to make the prospect of European LNG sales Senelec at the rate of around 2.5bn cubic metres
attractive to a super-major like BP. per year in order to support the operation of nine
These prospects are attractive enough, in any TPPs, in line with a government plan.
event, that they seem to justify taking out loans As such, the FSRU will support Senegal by
in relatively small amounts such as $71mn, a fig- ensuring that the national power provider has
ure that is several orders of magnitude below the a means of importing gas while waiting for the
$5bn cost estimate for GTA Phase I. They also Yakaar-Teranga project to come to fruition. Sen-
seem to make the volumes of LNG that will be egal therefore has good reasons to move forward
handled by the Karadeniz Powership Ayşegül with the KARMOL deal even after GTA comes
Sultan, which is capable of taking on 125,000 on line, and the credits from JBIC and MUFG
cubic metres (87.5 tonnes), seem quite small in will be welcome.™
comparison to GTA Phase I’s planned produc-
tion capacity of 5mn tonnes per year (tpy).

Week 01 05•January•2023 www. NEWSBASE .com P7