Page 13 - DMEA Week 45 2022

DMEA REFINING & FUELS DMEA

Vessels still at shipyards report stated. It said the companies were in talks
BP and Kosmos have not yet installed a gas liq- with potential buyers to use existing contractual
uefaction facility at the block, as their floating rights under Phase 1 sales agreements in ways
LNG (FLNG) vessel – a former LNG tanker that allowed them to reap maximum benefit
known as the Gimi LNG – has not yet finished from current market conditions – that is, from
undergoing conversion at the Keppel shipyard strong demand for gas in Europe, which has lost
in Singapore. much of its access to gas from Russia.
Even so, the FLNG is “[on] track for sail- Meanwhile, Kosmos said, the partners are
away in the first half of 2023, as construction and also in talks with each other, as well as the gov-
mechanical completion activities continue and ernments and national oil companies (NOCs)
commissioning work has begun,” the interim of Senegal and Mauritania on plans for Phase
report said. 2 of the GTA project. They said all the parties
It also noted that the floating production, were looking to find a solution that offered the
storage and off-loading (FPSO) unit built for maximum benefit at the lowest cost and were
Phase 1 of the project had not yet left the ship- considering development plans that made use
yard in Qidong, China where it was built. The of the infrastructure that is being put in place
FPSO has had to undergo extra inspection since for Phase 1.
Typhoon Muifa hit the shipyard, which is owned GTA, which straddles the offshore border
by Qidong Cosco Shipping Heavy Industry between Mauritania and Senegal, contains
(CSHI), a subsidiary of China’s COSCO, in Sep- around 15 trillion cubic feet (425bn cubic
tember, it explained. metres) of gas, enough to support an export-ori-
The storm compromised the FPSO’s moor- ented LNG project as well as pipeline deliveries
ing lines and caused it to drift about 200 metres to Senegal’s domestic market. Kosmos discov-
away from the quay, the interim report said. The ered gas at the block in 2015 and then teamed
vessel has been returned, and inspections have up with BP for the project in 2016.
not turned up any evidence of significant dam- The two companies made an FID on Phase
age, it stated. 1 of the project in late 2018. They have said they
“The forward plan is to complete all want to produce 2.5mn tonnes per year (tpy) of
inspections and incorporate any findings into LNG in this stage, perhaps rising later to 5mn
mechanical completion activities, along with tpy. Output could then double in Phase 2. ™
commissioning work prior to sail-away, which
is expected around the end of the year,” it added.
In the meantime, Kosmos added, the part-
ners have installed a shallow-water export
pipeline linking the FPSO to the gas hub.
They also hope to lay a deepwater pipeline and
in-field flowlines and have engaged a deepwater
pipe-laying vessel for the job, it said. This ship is
currently in the vicinity of the GTA and carrying
out final tests prior to launching work on these
lines, it reported.
BP and Kosmos are also working to find buy-
ers for Phase 1 LNG production from GTA, the Rendering of gas hub established for GTA Phase 1 project (Image: Eiffage)

Energy Minister: Tanzania expects to sign

agreements on LNG project in December

AFRICA TANZANIA’S Energy Minister January the conversation. We are in the fiscal package
Makamba reiterated on November 7 that his discussions now.”
country’s government was optimistic about its The documents slated for signing next
chances of signing a package of agreements in month include a final host government agree-
December with Shell (UK) and Equinor (Nor- ment (HGA), which outlines all the terms of
way), the foreign shareholders in the Tanzania the Tanzania LNG scheme, as well as the ben-
LNG consortium. efit-sharing agreement and the project law, he
“It’s happening,” Makamba told Bloomberg informed the news agency. The parties hope to
in an interview on the sidelines of the COP27 take a final investment decision (FID) in Janu-
international climate summit in Sharm El ary 2025, and this would allow LNG exports to
Sheikh, Egypt. “In December, we will conclude begin before 2030, he stated.

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