Page 12 - GLNG Week 39

GLNG AFRICA GLNG

South Africa pledges support

for Mozambican LNG projects

POLICY SOUTH Africa’s Deputy Minister of Trade, infrastructure network, Gina said. To date, she
Industry and Competition Nomalungelo Gina stated, the Development Bank of South Africa
said earlier this week that her country was com- (DBSA) has committed to providing $120mn
mitted to supporting natural gas development in funding for Mozambican infrastructure ini-
efforts in neighbouring Mozambique. tiatives. Public and private-sector firms from
Speaking during a virtual seminar on trade South Africa are playing an active role in this
and investment in southern Africa, Gina “very important venture,” she said.
pointed out that the two countries already had DBSA is not the only South African institu-
strong ties to each other. “South Africa is one of tion involved in Mozambique, she added. She
Mozambique’s great and major trading partners noted that two private South African banks,
and is also a major investor in Mozambique,” Standard Merchant Bank and Rand Merchant
she was quoted as saying by Devdiscourse. “It Bank, had joined the group of banks that had lent
is also among South Africa’s top five trading nearly $15bn to Mozambique LNG, the Total-led
partners in Africa. Our political and economic consortium that will use gas from the offshore
relations have remained strong and vibrant over Area 1 as feedstock for its LNG plant.
the years.” Gina went on to say that South Africa was
She also noted that Mozambique had high making co-operation with other African states a
hopes for the development of its offshore gas priority in light of the coronavirus (COVID-19)
reserves. “As we all know, Mozambique’s new pandemic. “This is one area that we’ve all seen
growth opportunity is anchored on the large the need to make sure that we produce locally
natural gas reserves and the associated liquefied [and supply] our mega-projects locally so that
natural gas [LNG] project in the Cabo Delgado we don’t depend on other countries to make sure
Province,” she said. that we survive as countries. I believe as African
South Africa aims to support these gas pro- countries this is one opportunity we can grab
jects by helping Mozambique to expand its with both hands,” she commented.™

AMERICAS

Echo mulls micro-LNG project in Argentina

PROJECTS & US-BASED Echo Energy is looking into the Limite, another gas-producing site about 5 km
COMPANIES possibility of launching a micro-LNG initiative away.
in Argentina. Campo Limite also lies within the Palermo
In a statement, the company said it had Aike licence area, Echo noted. As such, the com-
begun work on a feasibility study for the com- pany could “[aggregate] the volumes of Campo
pression and liquefaction of natural gas from Limite and Monte Aymond via a hub develop-
Monte Aymond, a field within the Palermo Aike ment approach to potentially lower development
block in Santa Cruz Province. It indicated that costs and [to] increase the returns from both
the project would involve the construction of a projects and also a standalone development,”
small-scale LNG plant at the field. Production the statement said.
from this facility could be loaded onto trucks for Gas was originally discovered at Monte
distribution within Argentina, it said. Aymond in 1984. During initial testing, the
The scheme “would increase the company’s well yielded 2.4mn cubic feet (67,960 cubic
ability to sell gas directly to clients in remote metres) per day of gas and condensate. It then
areas via truck transportation (a virtual pipeline) went into production for about 10 months,
with the potential to achieve materially higher during which period output averaged around 5
sales prices,” Echo said in its statement. mmcf (141,590 cubic metres) per day but was
The company did not reveal how much the abandoned.
micro-LNG initiative might cost or when it Echo is now hoping to bring the field back
expected to complete the feasibility study. But online. “Whilst this well was previously aban-
it did say that it was looking at an alternative doned, the company believes that the now
plan for gas from Monte Aymond. Specifically, improved local infrastructure and prevailing gas
it explained that it was considering a proposal prices mean Monte Aymond is now an exciting
to establish a link between the field and Campo commercial project,” the company said.™

P12 www. NEWSBASE .com Week 39 02•October•2020