Page 14 - GLNG Week 26
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GLNG AFRICA GLNG
UKEF set to back Mozambique LNG
INVESTMENT THE UK’s export credit agency UK Export at campaign group Oil Change International,
Finance (UKEF) is looking to provide up to told the agency. “The UK should never finance
$800mn in financing for the Total-operated another fossil fuel project if they are serious
Mozambique LNG project, Reuters reported on about being a climate leader.”
June 25 citing sources. Total operates Mozambique LNG with a
The UKEF listed the project as a potential 26.5% stake, while its partners are Japan’s Mitsui
candidate for investment last August, the news E&P (20%), India’s ONGC Videsh Ltd (OVL)
agency said. The agency has declined to com- (10%) and BPRL Ventures Mozambique (10%),
ment on its possible support, citing commercial local investors ENH Rovuma (15%) and Beas
confidentiality. Rovuma Energy Mozambique (10%) and Thai-
Mozambique LNG is set to produce 13mn land’s PTTEP (8.5%).
tonnes per year (tpy) of LNG, using gas from the Together they arranged $15bn in financing
Golfinho and Atum fields in the Rovuma Basin. for the project’s first phase in late May, accord-
The project, which carries a total cost of $23bn, ing to Bloomberg. Around 20 commercial banks
is due to start exporting by 2024. are expected to take part and are due to sign an
Total and others have looked to shift their agreement before the end of June, paving the
focus from oil to gas, banking on expected strong way for a final investment decision (FID) to be
growth in demand for the latter over the coming taken.
decades. They have also promoted gas as a transi- Mozambique LNG is one of several LNG
tion fuel, as its use results in fewer emissions than export ventures under development off the East
oil. But environmentalists are unconvinced, and African nation’s coast. Another one is Rovuma
oppose UKEF’s support for Mozambique LNG, LNG, led by ExxonMobil, which anticipates
according to Reuters. reaching an FID next year. That plant will pro-
“By backing this massive fossil fuel project, duce up to 7.6mn tpy of LNG starting in 2025.
the UK would undermine their credibility as Exxon is also involved in the Eni-led Coral South
they prepare to host the UN climate negotiations project, which is due to enter service in 2022. It
next year,” Alex Doukas, programme director will have a capacity of 3.4mn tpy.
AMERICAS
YPF sends force majeure notice to
Belgium’s Exmar for Tango LNG
PROJECTS & THE Belgian marine operator Exmar said it had company’s liquidity position will not be at risk
COMPANIES received written notification of force majeure until the end of 2020, it added.
from Argentina’s state-run oil major YPF on The Tango FLNG facility, previously known
their shared Tango floating LNG (FLNG) as Caribbean FLNG, was built in 2017. YPF then
project. signed a 10-year contract for it with Exmar in
In a statement, Exmar said that YPF has November 2018. That contract provided for the
“[claimed] that effects of the coronavirus vessel to liquefy and export natural gas from
[COVID-19] pandemic, both worldwide and in YPF’s fields in Vaca Muerta, a shale formation
Argentina, have hindered [its] ability to perform in the Neuquén Basin. It also stated that Tango
its obligations” under the charter and services FLNG would turn out up to eight LNG cargoes
agreements signed between the two compa- per year over the 10-year term of the deal.
nies. YPF has also said that its ability to pay The floating liquefaction plant, which is capa-
the invoices due for services performed for the ble of turning out 500,000 tonnes per year (tpy)
period starting in the second half of March had of LNG, has loaded four commercial cargoes
been affected, Exmar added. since last November. Operations have slowed
The Antwerp-based firm questioned the down since March, when YPF said it was taking
legality of this move. “Exmar considers the emergency measures, including the gradual sus-
notice to be unlawful, has reserved its rights and pension of non-critical activities, in response to
is considering its best option to defend its inter- the global coronavirus pandemic.
ests,” it said. YPF is the main producer of gas in the Vaca
Regardless of the outcome of the dispute with Muerta formation, one of the largest shale plays
YPF, Exmar is contemplating several measures in the world. It is now facing challenges in its
to safeguard its liquidity position, the statement effort to develop the formation, as the lockdown
noted. On the basis of current forecasts, the has slashed global fuel demand.
P14 www. NEWSBASE .com Week 26 03•July•2020
