Page 15 - AfrOil Week 44 2021

AfrOil PROJECTS & COMPANIES AfrOil

The Mozambique LNG plant will process gas from Area 1 (Image: TotalEnergies)
He noted, though, that the project played an for extracting gas from Area 1, which lies off-
important role in his company’s projections for shore within the Rovuma basin, and using it
next year. “In order to reach our revenues target as feedstock for the gas liquefaction plant that
in 2022, we also have to consider the contribu- TotalEnergies has started building on the Afungi
tion of Mozambique,” he was quoted as saying by Peninsula. This facility will eventually have
Reuters during the conference call. He did not two production trains, each with a capacity of
reveal Saipem’s forecast revenues. 6.44mn tpy.
The Italian company, through a joint ven- Total E&P Mozambique Area 1, the TotalEn-
ture with Chiyoda (Japan) and McDermott ergies subsidiary that is acting as operator of
International (US), is serving as the engineer- Mozambique LNG, holds a 26.5% stake in
ing, procurement and construction (EPC) con- the project. The remaining equity is divided
tractor for the Mozambique LNG project. The between two Japanese companies, Mitsui and
joint venture won the contract in 2019 and is on Japan Oil, Gas and Metals National Corp. (JOG-
track to provide about $6bn worth of services MEC), which have a combined stake of 20%;
to TotalEnergies and its partners. It was due to Mozambique’s national oil company (NOC)
carry out around €1.4bn worth of work between ENH, with 15%; Bharat Petroleum (India), with
April and December of this year, but it had to 10%; ONGC Videsh Ltd (OVL, India), with
suspend operations following TotalEnergies’ 10%; Beas Rovuma Energy Mozambique (a
declaration of force majeure in late March. 60:40 joint venture between OVL and Oil India
The total cost of Mozambique LNG is Ltd, or OIL), with 10%; and PTTEP (Thailand),
expected to reach $20bn. The project calls with 8.5%. ™

Egypt reduces rebate offered to

LNG tankers crossing Suez Canal

EGYPT EGYPT is lowering the rebate offered to LNG gas, has indicated that it will not deliver more
tankers passing through the Suez Canal to 15% fuel this winter.
effective November 1, the Suez Canal Authority However, European buyers may be able
(SCA) has said. to obtain more from Qatar, the world’s largest
SCA announced the change in a statement exporter of LNG. Qatar uses the Suez Canal to
published on its website on October 27. The deliver gas to Europe, as this route is the fastest
rebate rate had previously been set at 25%. maritime route to that market.
The organisation appears to be taking this SCA has reported that a total of 750 LNG
step in the hope of benefiting from the surge tankers transited the Suez Canal in 2019, the
in natural gas prices on the European market. last year for which full annual statistics were
European gas prices have already risen five-fold available as of press time. In the same year, LNG
this year, largely owing to supply pressures. Rus- tankers accounted for 4% of vessel traffic and 7%
sia, which is Europe’s largest single supplier of of total tonnage sailing through the canal. ™

Week 44 03•November•2021 www. NEWSBASE .com P15