Page 6 - GLNG Week 36 2021

GLNG AFRICA GLNG

Sasol, CEF sign MoU on development

of domestic gas sector

PROJECTS & SOUTH Africa’s Sasol has teamed up with Cen- sector had the potential to benefit South Africa’s
COMPANIES tral Energy Fund (CEF), a government-run economy while also facilitating the transition
developer of energy solutions, to expand the to renewable energy sources. “[Gas] remains a
domestic natural gas sector. critical component in our country’s just energy
In a statement, Sasol said it had signed a transition journey, and our continued collabo-
memorandum of understanding (MoU) with ration with Sasol in unlocking growth in the gas
CEF earlier this week. It did not reveal many space remains critical for us in contributing to
details of the document, but it did say that the the achievement of an optimal energy mix,” he
MoU “brings together South Africa’s two lead- said.
ing pioneers of the gas industry that possess Meanwhile, Priscilla Mabelane, the executive
deep experience in operating across the gas vice-president of Sasol’s energy business, said
value chain, from exploration to downstream she expected co-operation with CEF to bear
operations.” fruit. “Sasol has had a long-standing relationship
The company further stated that it intended with CEF through our well-established partner-
to work with CEF to assess future options for ship in the Republic of Mozambique Pipeline
securing, transporting and distributing gas Co. (ROMPCO) pipeline and looks forward to
within South Africa. The parties will focus on commencing this next stage of growth in gas
“enabling infrastructure critical to sustain and together,” she stated.
grow the gas market” and will also work to Mabelane also described questions about
develop “multiple low-cost gas import locations future energy supplies as important, saying:
around the country,” it said. “Gas is instrumental in enabling a just energy
These “import locations” are likely to include transition in South Africa and requires imme-
multiple LNG regasification terminals, which diate attention to introduce additional sup-
may then attract investment to surround- ply to South Africa. Currently, the country’s
ing areas, it noted, adding that this model had gas supply comes from the Pande-Temane
proved successful in India. gas fields in Mozambique, which will need
Ishmael Poolo, CEF’s group chief execu- to be supplemented in the long term as these
tive, commented that development of the gas reserves begin to mature.”™

AMERICAS

NFE finalises terms for Brazilian supply deal

PROJECTS & NEW Fortress Energy (NFE) has announced this Brazil,” stated NFE’s chairman and CEO, Wes
COMPANIES week that it has finalised the commercial terms of Edens.
a deal with a Norsk Hydro subsidiary to supply Meanwhile, Hydro’s executive vice-presi-
natural gas to the Alunorte alumina refinery in dent for bauxite and alumina, John Thuestad,
Pará, Brazil. The gas will be supplied from NFE’s described the fuel switch to LNG as “another
Barcarena LNG receiving and regasification ter- step to improve our operations, driving sustain-
minal, which is also located in the state of Pará. ability and industry best practices to lower envi-
Under the terms of the 15-year agreement, ronmental impact”.
NFE will supply Hydro with 29.5 trillion British The two companies also believe that as the
thermal units of natural gas per year, equivalent Alunorte refinery will be a major gas consumer,
to roughly 1mn gallons (3.8mn litres) per day it will help LNG supply to become more broadly
of LNG. The deal comes as Hydro converts the established in Pará State, opening up access for
calcination process and part of the steam gen- other industries and customers.
eration at the Alunorte refinery from fuel oil The agreement is subject to the execution of
to natural gas as part of its global commitment definitive agreements, a final build decision and
to reduce its greenhouse gas (GHG) emissions approval by Hydro.
by 30% by 2030. The fuel switch is anticipated NFE’s Barcarena terminal is anticipated to be
to reduce the refinery’s carbon dioxide (CO2) completed and ready to supply natural gas in the
emissions by 600,000 tonnes per year (tpy). first quarter of 2022, while the Alunorte refinery
“This is a great example of how our LNG ter- is expected to complete the conversion to natural
minals can accelerate the energy transition in gas by the first quarter of 2023.™

P6 www. NEWSBASE .com Week 36 10•September•2021