Page 12 - DMEA Week 08 2022
P. 12
DMEA PIPELINES DMEA
Malaysian piping specialist Wah
Seong secures EACOP contract
AFRICA WAH Seong Corp. has secured a MYR106bn of the coatings division of Wah Seong group and
($254.1mn) contract to provide thermal insu- the risks are the normal operational risks asso-
lation services for the East Africa Crude Oil ciated with the said business,” the bourse filing
Pipeline (EACOP) consortium, the Malaysian said, noting that the EACOP contract was pro-
oil- and gas-piping specialist announced on ject-specific and not renewable.
February 22. EACOP is a key component of the $10bn
Wah Seong’s indirect subsidiaries, Italy-based Lake Albert Development Project, which also
ISOAF S.r.L and Tanzania-based ISOAF TZ Ltd, comprises the development of multiple oilfields
have been awarded the contract for the provi- in western Uganda. The upstream component
sion of line pipe thermal insulation services for of the project calls for the establishment of pro-
EACOP and its feeder line, which will run from duction and processing infrastructure at Tilenga,
the town of Kabaale in Uganda to the port of operated by the French major TotalEnergies, and
Tanga in Tanzania. Kingfisher, operated by China National Offshore
In a filing with Bursa Malaysia, Wah Seong Oil Corp. (CNOOC).
said the work and services to be performed were The EACOP pipeline will follow a 1,443-
within the business scope of the coatings division km route from Hoima in Uganda to the port of
of the group and are expected to be completed Tanga in Tanzania. It is set to be the world’s long-
within 30 months from February 18 – i.e., by est heated oil pipe. Construction is due to start
mid-August 2024. in 2023 and will take two years to complete. The
“The work and services to be performed link will have a throughput capacity of 216,000
under the contract are within the business scope barrels per day (bpd).
TERMINALS & SHIPPING
Shell warns that LNG market
will remain tight in 2022
GLOBAL SHELL said on February 21 it expected the integrated gas, renewables and energy solutions,
global LNG market to remain tight in 2022, after Wael Sawan, commented. “As countries develop
a 6% climb in demand last year. lower-carbon energy systems and pursue net-
In its latest LNG outlook, the oil major said zero emissions goals, focusing on cleaner forms
that growing demand in China and South Korea of gas and decarbonisation measures will help
had driven the increase in consumption last year, LNG to remain a reliable and flexible energy
with China raising its imports by 12mn tonnes source for decades to come.”
to 79mn tonnes, surpassing Japan as the world’s To avoid future price spikes, Shell said a more
largest buyer. Chinese LNG buyers signed long- strategic approach was needed to ensure that gas
term contracts for more than 20mn tonnes per supply remains reliable and flexible in the future.
year (tpy) of supply during 2021. It forecast that an LNG supply-demand gap was
Exports grew last year in spite of various out- expected to emerge in the mid-2020s, stressing
ages, including in Australia and Norway, thanks the need for extra investment to meet rising
to a surge in US deliveries of 24mn tonnes. This demand, particularly in Asia.
means the US is on track to become the world’s Global LNG demand is set to exceed 700mn
largest exporter this year. tpy by 2040, Shell said, representing a 90%
“Last year showed just how crucial gas and increase on the level in 2021. The majority of this
LNG are in providing communities around the growth – 70% – will originate in Asia, as indig-
world with energy they need as they strived to enous production in the area declines, regional
get back on track following the difficulties caused economies grow and LNG replaces higher-emis-
by the COVID-19 pandemic,” Shell’s director for sions energy sources.
P12 www. NEWSBASE .com Week 08 24•February•2022
