Page 14 - AfrOil Week 06 2022

AfrOil PROJECTS & COMPANIES AfrOil

However, it said that Ceramic had agreed to buy gas fields near Welkom, Virginia and Theunis-
the LNG at a fixed priced that would rise each sen in Free State.
year at a rate linked to the consumer price index It has been focusing on CNG production but
(CPI). will shift to LNG once the first phase of its gas
Stefano Marani, the CEO of Renergen, liquefaction plant comes online. Some of the
expressed satisfaction with the new contract. Phase One LNG will go to Renergen’s industrial
“We are proud to be associated with Ceramic consumers, while some will be sold to a local
Industries and look forward to building a subsidiary of TotalEnergies (France) for use as
long-standing partnership with the company, long-haul trucking fuel.
aimed at reducing its carbon emissions whilst Meanwhile, the company is also planning to
diversifying energy supply,” he commented. bring the LNG plant’s second stage on stream in
“This marks our second and final industrial 2023 or later. Phase Two will include a helium
contract from Phase One,” he added. The com- unit, as the Virginia fields contain unusually
pany signed its first industrial LNG supply con- high volumes of the inert gas. Sproule, an inter-
tract for Phase One with Consol Glass, another national energy consulting firm, estimates that
South African firm, in August of last year. these sites may hold as much as 9.74bn cubic
Renergen is leading the Virginia gas project, metres of helium, or more than the total proven
which encompasses the development of natural reserves of North America. ™

Coral Sul FLNG installation still on schedule

MOZAMBIQUE THE Italian major Eni has said that work on the According to previous reports, the Coral
Coral South LNG project offshore Mozambique South LNG consortium is installing the Coral
is proceeding on schedule. Sul vessel at the operating site, which is located
When contacted by the Mozambican daily in approximately 2,000-metre-deep water. Its
Noticias, sources inside Eni reported that the contractor for mooring and hook-up of the
Coral South consortium’s contractors were FLNG is TJS, a group formed by Technip Ener-
moving forward with the installation of the gies (France), JGC (Japan) and Samsung (South
Coral floating LNG (FLNG) platform at the Korea).
Block 4 licence area. The vessel is about 432 metres long and 66
Installation work remains on schedule, said metres wide. It weighs around 220,000 tonnes
the sources, who were not named. As of early and can accommodate as many as 350 peo-
February, they stated, the contractors were ple. When complete, it will be able to turn out
focusing on preparations for anchoring and around 3.4mn tonnes per year (tpy) of LNG
mooring of the FLNG vessel, which arrived in from its single production train. BP (UK) has
Mozambican waters in early January. agreed to purchase all of its output within the
Once the vessel has been installed in its final framework of a long-term agreement.
position and connected to the production infra- Eni discovered the Coral field at Area 4 in
structure that will be used to extract natural gas 2012 and made an FID in favour of going for-
from the Coral section of Block 4, commission- ward with the $10bn Coral South LNG project
ing operations will begin. This phase of work in 2017. The shareholders in the project are
will involve the testing of all equipment before Mozambique Rovuma Venture (MRV), a joint
the start of commercial production, in line with venture owned by Eni (the operator), ExxonMo-
Mozambican regulations governing the licens- bil (US) and China National Petroleum Corp.
ing of oil and gas operators and infrastructure, (CNPC); Galp (Portugal); KOGAS (South
the sources noted. Korea), and ENH, Mozambique’s national oil
They went on to describe the arrival of the company. ™
Coral Sul FLNG vessel in Mozambique’s off-
shore zone as a demonstration of the capacity
of Eni and its partners to carry out their work
safely and on time. The Coral South LNG pro-
ject “is moving as planned towards its opera-
tional phase, and we are confident that the first
production of LNG will occur within the second
half of 2022,” they told Noticias.
If Eni and its partners can start production at
the Coral field this year as anticipated, they will
be the first group to launch upstream develop-
ment in the Rovuma basin. They will also be the
first to operate a floating gas liquefaction facility
in an ultra-deepwater zone. Coral will be the first producing gas field at Area 4 (Image: Galp)

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