Page 5 - GLNG Week 12 2023

GLNG COMMENTARY GLNG

challenging, as the climate for financiers in the This means that projects such as Rovuma
oil and gas space has become more difficult. that are likely to come online after 2026 will be
According to Energy Voice, Rovuma has entering a smaller demand pool, as new supply
secured funding from the US government’s will have already flooded the market, creating a
International Development Finance Corpora- supply glut and as a result lower than anticipated
tion and France’s Credit Agricole, but a shifting prices, tighter margins and diminished profits.
LNG global marketplace could make financing Similarly prospects in several markets for
the project a challenge. LNG are beginning to look more challenging.
Meanwhile, even if FID is made this year, China appears to be relying more heavily on
it will be several years before LNG is delivered pipeline gas from Russia. Meanwhile in Europe,
from Rovuma, and headwinds are expected to countries are accelerating towards net-zero tar-
be strong for the sector in the latter half of the gets, with wind and solar projects anticipated to
decade. According to the Institute for Energy play a bigger role in the energy mix in the latter
Economics and Financial Analysis (IEEFA), half of the decade.
a tidal wave of new projects will come online Indeed, Rovuma LNG has experienced a
starting in 2025 with the addition of 64mn tpy of roller-coaster ride so far, and additional hurdles
liquefaction capacity. The supply additions will will need to be cleared, but steps are being taken
raise global LNG capacity by about 13% in just in the right direction and it could mark a trans-
one year. formative phase for Mozambique. ™

Week 12 24•March•2023 www. NEWSBASE .com P5