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Leviathan partners consider FLNG options
israeL
DEVELOPERS of the Leviathan gas eld o - shore Israel have lined up front-end engineer- ing and design (FEED)studies for oating LNG (FLNG) exports. Delek Drilling, which has a 45.34% stake in the Leviathan project, said two separate agreements, with Golar LNG and Exmar, had been signed on July 29.
The FLNG unit might have production capacity of 2.5-5mn tonnes per year (tpy). Delek said negotiations would focus on commercial terms and conditions for such a facility, and its operation. e agreement with Golar was for an assessment of a generic FEED study on the con- struction of an FLNG facility in Israel’s exclusive economic zone (EEZ).
It was also to provide detailed engineering plans on such a facility. e deal with Exmar was for a dedicated FEED on Leviathan, in addition to detailed engineering plans. Delek noted both companies’ experience in this area. Golar has provided a producing FLNG unit in Cameroon, to Perenco, while Exmar has recently started up the Tango FLNG unit, o shore Argentina.
Belgium’s Exmar is also the provider of a oating storage and regasi cation unit (FSRu) at Hadera, in Israel. Should Exmar or Golar put
forward a convincing case, Delek said the part- ners on Leviathan would engage one of them in a long-term deal-covering construction, nanc- ing, operations and maintenance.
ere has been discussion of an FLNG unit in the area before. In April, ExxonMobil was rumoured to be holding talks with the Levia- than partners on such a plan. is would have involved linking up the uS super-major’s nds o shore Cyprus.
Leviathan holds around 600bn cubic metres of gas, while ExxonMobil’s Glaucus find, in Cyprus’ Block 10, may contain 140-220bcm.
The most prominent option, though, has been the construction of a pipeline onshore, ulti- mately taking gas to liquefaction plants in Egypt, at Idku or Damietta.
Leviathan is in waters 1,600-1,750 metres deep, which would likely require a more expen- sive FLNG option, similar to the $7bn Coral South LNG plan in Mozambique, or the$14bn Prelude LNG project in Australia.
A cheaper option might be to pipe the gas to shallower waters, where an FLNG unit could be moored –a technique Golar is implementing o - shore Senegal-Mauritania for BP.
Iran’s latest tanker seizure may be routine
iran
IRAN’S Islamic Revolutionary Guard Corps (IRGC) has seized a small tanker carrying fuel in the Persian Gulf, carrying out the second such capture of this type of vessel in as many weeks, Press TV reported on August 4.
ere were initial fears that the move might be a clear stepping up of Iran’s actions and threats directed at foreign oil tankers in the Strait of Hormuz, but later in the day IRNA news agency reported that the vessel was Iraqi and reports indicated that Iran was merely keeping up ongo- ing operations against smugglers who exploit the country’s subsidised petroleum by smuggling it to Arab countries. However, the seizing of the tanker will nevertheless send the message that the Iranians remain on high alert as to what ves- sels are passing through the strait and have the capability to grab ships that for one reason or another become a target. e tanker was report- edly carrying 700,000 litres of petroleum. Satel- lite imagery outside of Bushehr Port indicated it could have been the Tanzanian- agged Denas tanker, which had been anchored outside of the port for more than 24 hours. Press TV said the IRGC’s naval forces had “seized a foreign tanker in the Persian Gulf that was smuggling fuel for some Arab countries”.
e vessel was intercepted near Iran’s Farsi Island in the Gulf, Iran’s semi-o cial Fars news
agency added. e agency backed up reports by Lebanon’s Al-Mayadeen television station which reported that the tanker was seized late on July 31. “ e boats of the IRGC navy were patrolling the area to control tra c and detect illicit trade when they seized the tanker,” Fars quoted Guards commander Ramezan Zirahi as saying.
e Swedish-owned, British- agged Stena Impero remains in the custody of Iran. It is anchored just south of Iran’s southern port of Bandar Abbas, where it has remained as part of what is widely regarded as a tit-for-tat move made by Tehran over the seizure of the Ira- nian vessel Grace 1 by British Marines in July o Gibraltar, acting, Iran claims despite British denials, on a request from the uS.
e British now have two frigates escorting uK ships passing through the Strait of Hormuz. e uS Secretary of State Mike Pompeo said on August 4 that he was “very con dent” Washing- ton would be able to build a maritime security coalition of the uS and allies in the Persian Gulf, but he didn’t provide details on which nations may be willing to participate. Germany has refused to participate, saying e orts need to be directed at diplomacy, Australia is reported to still be in two minds whether to contribute ves- sels but Singapore, according to some reports, is set to contribute some ships.
Week 31 06•August•2019 w w w . N E W S B A S E . c o m P7
