Page 4 - AfrOil Week 12 2020

AfrOil COMMENTARY AfrOil
The Mozambique LNG plant will process gas from two offshore fields, Atum and Golfinho (Image: Anadarko)
Work inches forward on Mozambique LNG, Coral South FLNG
New contracts awarded for services related to the Mozambique LNG and Coral South FLNG projects mark steps forward for both facilities in an increasingly uncertain market
WHAT:
Service contracts were recently awarded for the Mozambique LNG and Coral South FLNG projects.
WHY:
Construction is proceed- ing on both facilities, with completion expected within the next four years.
WHAT NEXT:
Mozambique’s further LNG prospects look
more uncertain in an increasingly oversupplied market.
A contract awarded earlier this month by the engineering, procurement and construction (EPC) consortium working on Mozambique LNG marks another step forward on the facil- ity’s construction.
The consortium, known as CCS JV and com- prising affiliates of Saipem, McDermott and Chiyoda, has selected Air Products to provide two LNG heat exchangers.
The coil-wound main cryogenic heat exchangers (MCHEs) will be manufactured at Air Products’ facility in Port Manatee, Flor- ida, and then shipped to the project site on the Afungi Peninsula in Cabo Delgado, Mozam- bique. The MCHEs, which use proprietary Air Products technology, will operate at the Mozam- bique LNG site as part of two separate liquefac- tion trains, with a combined capacity of around 13mn tonnes per year (tpy).
“We have been tasked with building the first onshore LNG export facility in Mozambique
and one of the most efficient facilities in the LNG space,” CCS JV’s chairman, Roberto Uberti, said in a statement. “We are carefully selecting relia- ble and experienced technology providers and under this perspective the benefits of Air Prod- ucts involvement are clearly consistent.”
Uberti’s comments come as efficiency becomes an ever greater priority for the oil and gas industry in an increasingly challenging operating environment.
With crude oil prices tumbling and a global glut of LNG being exacerbated by shutdowns related to the coronavirus (COVID-19) pan- demic, the duration of which remains unknown, any competitive advantage has become even more essential.
Mozambique LNG is due to come online in
2024 – by which point the glut is anticipated to
ease – but even beyond the challenging short
term, mega-projects are set to increasingly pri- oritise efficiency. 
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w w w . N E W S B A S E . c o m Week 12 25•March•2020