Page 5 - GLNG Week 01 2021

GLNG COMMENTARY GLNG

plant offshore Mauritania as part of a planned It’s worth noting, though, that there is another
energy hub. significant difference between these projects.
In a press release dated December 21, Coral South LNG is something of a vertically
the company reported that it had signed a integrated endeavour, as the Eni-led consortium
non-binding memorandum of understanding is directing and funding the effort to monetise
(MoU) with Mauritania’s government on the Area 4 from top to bottom – by extracting the
establishment of an offshore facility capable of gas, processing it into LNG and loading onto
using existing gas reserves as feedstock for the tankers for exports.
production of LNG, blue ammonia and electric NFE, by contrast, is coming from a different
power. It did not say whether it had identified angle. It is not looking to invest in upstream
a source of gas for the proposed energy hub, exploration and development. Instead, it is mak-
but it did note that the facility would be able to ing its technology and capabilities available to
deliver gas to two power-generating facilities in firms that are working at existing gas deposits
Mauritania. One of these, the 180-MW Somo- and aims to give them an economical means of
elec thermal power plant (TPP), is already in turning their production into LNG, ammonia,
existence, and the other, a new 120-MW com- electricity or (presumably) pipeline shipments
bined-cycle TPP, is slated for construction, it to onshore customers.
explained. The difference between these two approaches
NFE further stated that the facility would is illustrative of a broader change in the LNG The difference
make use of its “Fast LNG” technology, which sector. LNG was initially perceived as a rela-
uses modular units to establish midsize gas liq- tively inflexible and cumbersome commodity, between these
uefaction plants in conjunction with jack-up best suited to long-term, large-scale contracts two approaches
rigs or other types of floating infrastructure. handled by major players with the widest pos-
This method will allow the partners “to pro- sible range of in-house capabilities. Over time, is illustrative of a
duce LNG in the Atlantic coastal basin offshore though, the market has become more open and
Mauritania for local gas and power markets as flexible, with room for smaller players, more broader change
well as international exports,” it said in its press varied types of contracts and more specialised
release. It can also be deployed more rapidly and service providers. in the LNG sector.
cheaply than existing FLNG solutions, the com- Hence the difference between Coral South
pany added. LNG and NFE’s proposal for Mauritania. Eni
and its partners are a bit closer to the older pat-
Different approaches to FLNG tern, in which everything is handled by the con-
These two projects are, of course, at very dif- sortium’s operator and its chosen contractors,
ferent stages of development. Coral South whereas NFE almost appears to be talking about
LNG is gearing up to start commercial pro- offering gas liquefaction as a service. If current
duction later this year and has already spent trends persist, there may be more companies
a significant amount of money. NFE, by con- that take a similar approach in the future, treat-
trast, has only reached the point of signing ing LNG as a more flexible (and smaller-scale)
an MoU and is not ready to make any formal commodity than Coral South LNG and other
commitments. large consortia have done.™

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