Page 7 - AfrOil Week 11 2023

AfrOil COMMENTARY AfrOil

The scheme will eventually unlock some 760mn power plants (TPPs) from running out of fuel in
cubic feet (21.52mn cubic metres) per day, the summer months when electricity demand
enough to help cover domestic demand as well peaks.
as exports. Last year, Greenstream gas flows averaged
Meanwhile, Bengdara also noted at CER- 250 mmcf (7.08 mcm) per day, equivalent to
AWeek that NOC was teaming up with Eni for a nearly a third of the link’s design capacity of
$1.2bn effort to reduce associated gas flaring at 775 mmcf (21.95 mcm) per day, the lowest level
offshore production facilities. This initiative will recorded since 2011. (Volumes have reportedly
encompass the Bouri Gas Utilisation project, edged up to 265 mmcf, or 7.504 mcm, per day
which aims to capture flared gas at the 25,000 since the start of 2023, though.)
barrel per day (bpd) Bouri oilfield at the rate of At CERAWeek, Bengdara stated that Libya
85 mmcf (2.407 mcm) per day, he stated. had several alternatives for establishing new gas
Additionally, he said, Eni and BP aim to export infrastructure. NOC could build a new Bengdara
carry out exploration drilling in Libya’s onshore gas liquefaction plant to replace the mothballed
Ghadames and Sirte basins and will conduct Marsa el Brega LNG facility or construct a gas says Libya is
offshore drilling in 2024. He noted that the par- pipeline to Egypt for potential tie-ins to the
ties were eyeing Area C, a large offshore site that existing Idku and Damietta terminals, which looking into
some experts believe has the potential to pro- Cairo has said it want to expand over the next
duce more natural gas than Zohr, Egypt’s largest few years, he said. several new
field, which is capable of yielding up to 2.6bn options for
cubic feet (73.63 mcm) per day. (This is equiv- Clearing the hurdles
alent to twice the volume of Libya’s current gas As of press time, though, it was not immediately exporting its
output – 1.3 bcf or 36.81 mcm per day, according clear when a decision might be made or how
to figures cited by Argus Media.) much any of these projects might cost. Nor was natural gas
it certain whether or when NOC expected to
Need for infrastructure secure political approval for its plans.
This is an impressive figure. But as Argus Media Indeed, the company may have a difficult
pointed out, Libya will have difficulty carry- time clearing this hurdle, as Libya remains
ing out its plans if it does not make substantial politically fragmented, with different factions
investments in infrastructure. competing for power in the western and east-
Existing gas transportation and distribu- ern parts of the country. The UN’s Libya envoy,
tion networks are barely adequate for domes- Abdoulaye Bathily, has proposed holding elec-
tic needs, and they are certainly not capable of tions this year, but internal squabbling and com-
handling large volumes of additional gas if they peting international interests pose significant
become available from the new fields targeted obstacles.
by Eni and NOC. In the meantime, NOC is also seeking more
Indeed, exports through the Greenstream investment from IOCs to boost overall produc-
pipeline to Italy, Libya’s only gas export outlet, tion in Libya, Bengdara added. The country pro-
are regularly capped to meet domestic needs. duced 1.13mn bpd of crude in January but plans
However, even these measures are not enough to increase oil output to 2mn bpd within three to
to prevent the North African state’s thermal five years, he explained. ™

PIPELINES & TRANSPORT
Shell lifts force majeure on Bonny Island

terminal, boosting Nigerian oil production

NIGERIA SHELL Petroleum Development Co. (SPDC) March 3, had threatened to set back the lifting
has announced the lifting of the force majeure of the force majeure and resumption of opera-
on its 250,000-barrel per day (bpd) Bonny Island tions. However, crude receipts at the terminal
export terminal, effective as of March 15. have remained consistent in the days following
The joint venture issued a declaration of force the blaze.
majeure a year ago due to a decline in crude According to the Nigerian Upstream Petro-
receipts, which resulted in the suspension of leum Regulatory Commission (NUPRC), pro-
exports. Although the company began a “lim- duction of Bonny Light grade crude oil went
ited export programme” in early December, the up from 52,000 bpd in January to 78,000 bpd
terminal had remained under restriction. in February. This resulted in a 4% month-on-
A fire on the Trans-Niger Pipeline (TNP), month increase in Nigeria’s overall petroleum
which serves the Bonny Island terminal, on output.

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