Page 6 - GLNG Week 27

GLNG afRICa GLNG
ENH bides time on financing plans
InvEstmEnt
MOzAMBIQUE’S state-owned Empresa Nacional de Hidrocarbonetos (ENH) has pushed back plans to line up nancing for the Mozambique LNG project, which reached nal investment decision (FID) in mid-June. ENH Rovuma Area Um has a 15% stake in the scheme. The company requires $2.3bn for its share of spending.
A report in Bloomberg this week quoted ENH’s CEO, Omar Mitha, as saying it would “go back to the market to seek funding” later this year. is is intended to reduce risk and provide better terms, he said. Advising ENH is Lion’s Head Global partners.
A report from the Lusa press agency quoted Mitha as saying the company intended to borrow from export credit agencies (ECAs) rather than commercial banks.
Mozambique’s nancial situation has su ered as a result of bad loans taken out in 2013-14. It was unable to service these debts and declared default.
e expectation is that once a deal has been reached to get its debts back on track, lenders will be more willing to engage with Maputo. Mozam- bique is in talks on some of its debts, while con- testing the legality of other agreements such as the proindicus sum.
A government representative was quoted by the news report as saying it would provide a
guarantee for ENH to raise funds.
Anadarko petroleum, the US-listed company
that is operating Mozambique LNG, noted that each partner was responsible for sourcing its own share of equity nancing.
Mozambique LNG will consist of two LNG trains, with 12.88mn tonnes per year of capacity. Gas for the plant will come from Area 1, which is o shore in the Rovuma Basin. Sales of 11.1mn tpy have been signed for the project, with o ak- ers in Asia and Europe.
is liquefaction plant will be based at the Afungi LNG park, also home to the proposed Rovuma LNG. is second plant is anticipated to reach FID this year. ENH also has a 10% stake in Rovuma LNG.™
amERICas
West Coast environmental woes
PolICy
WHILE the US is rapidly establishing itself as a major LNG heavyweight, not all plans are win- ning local support – particularly on the country’s West Coast. A lawsuit was led this week against Tacoma LNG in Washington State, while the Oregon Department of Environmental Quality (DEQ) led a major rebuke to plans for the Jor- dan Cove LNG project, in Coos Bay.
The lawsuit against Tacoma LNG, which is under construction, was filed in Thurston County, a statement from the Advocates for a Cleaner Tacoma (ACT) group said on July 9. is sought to challenge a decision by the Wash- ington State Department of Ecology’s issue of a permit for a proposed facility in the port, backed by puget Sound Energy.
Tacoma LNG is a small-scale liquefaction facility, with proposed capacity of 400,000 tonnes per year (tpy), intended to provide fuel for local transportation. At times of peak demand, the plant could also regasify LNG and inject the gas
into the grid – operating as a peak shaving facil- ity. It is anticipated to be operational in late 2020. ACT, which is working on the case with the Sierra Club, claims that the issue of a water quality certi cate for the plant did not include a thorough analysis of climate emissions and other impacts. e department has a “legal responsi- bility to consider the full environmental impacts of proposed fossil fuel projects, and Tacoma LNG is no exception,” said a Sierra Club repre- sentative, Stephanie Hillman. “It is unacceptable to allow this massive fracked gas facility to be built in our state without considering the threat
to our communities and our climate.”
In addition to the alleged certi cate dispute, ACT has also expressed concerns about the impact on the puyallup people. Construction of the plant would violate the Medicine Creek Treaty rights, the group said. e department should carry out a full lifecycle climate impact
analysis, it continued.
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w w w . N E W S B A S E . c o m Week 27 11•July•2019