Thursday, October 17, 2019

Mozambique News

Mozambique LNG Project Moves Ahead

Image: Mozambique LNG project

With a second Final Investment Decision (FID) in just 2 years, Mozambique has officially positioned itself as a key player in the global gas and LNG market for years to come.The latest FID on the US$20 billion Mozambique LNG project, makes it the largest sanction ever in sub-Saharan Africa oil and gas.Described by His Excellency President Nyusi as “one of the most important and transformational projects in the country’s history”, Mozambique LNG is set to be a game-changer for this East African nation of 31 million people.According to Wood Mac…

Mozambique Awards Rovuma LNG Project Gig

Pierre Bechelany (center), Fluor's president of Pipelines & LNG, signs contract. (Photo: Business Wire)

Mozambique Rovuma Venture (MRV) has awarded an engineering, procurement, and construction contract to a consortium of Fluor, JGC, and TechnipFMC for its Mozambique Rovuma LNG Phase 1 project in Cabo Delgado, Mozambique.MRV, a joint-venture composed of Eni, ExxonMobil and CNPC, holds a 70% interest in the exploration and production concession of Area 4, with Galp, Kogas and Empresa Nacional de Hidrocarbonetos (ENH) each holding a 10% interest.The Rovuma LNG Project will produce…

Total Closes Mozambique LNG Purchase

(Image: Total)

Total has completed the acquisition of Anadarko's 26.5% stake in Mozambique's liquefied natural gas (LNG) project for $3.9 billion, the French oil major said on Monday."Mozambique LNG is a one of a kind asset that perfectly fits with our strategy and expands our position in liquefied natural gas," Total chairman and CEO Patrick Pouyanne said in a statement.Anadarko, which had led the southern African LNG project, was taken over by Occidental Petroleum Corp. and…

Mozambique Eyes $880 Mln in Tax from Anadarko Takeover

© LEMONGATE / Adobe Stock

Mozambique is targeting $880 million in capital gains tax from the takeover of Anadarko Petroleum by Occidental Petroleum, local newspaper O Pais reported on Friday.Anadarko led a liquefied natural gas project in the southern African country, but it was replaced by Total after the French oil major agreed to buy Anadarko's African assets as part of the Occidental takeover.President Filipe Nyusi announced the capital gains tax target after he met Occidental and Total managers in the city of Chimoio, O Pais reported.Mozambique's economy has been hobbled in recent years by a hi

Vitol, ENH Form LNG Trading JV

Image: Vitol

Commodity trading company Vitol and the Mozambican state-owned oil and gas company ENH have formed ENH Energy Trading, a partnership focused on trading oil products.The Dutch energy and commodity trading company said in a press note that ENH Energy Trading will initially be owned 51% by ENH and 49% by Vitol. It is anticipated ENH’s share will increase over time.ENH Energy Trading will focus on energy commodities, in particular LNG, LPG and condensate, enabling…

Boskalis Unit Scores Mozambique FLNG Gig

Pic: ENI

Dutch dredging company Royal Boskalis Westminster announced that its 50%-owned associate company Smit Lamnalco is contracted by Coral FLNG to provide marine services to the first Mozambique floating liquefied natural gas (FLNG) terminal.The 10-year contract with additional extension options marks the first terminal services contract award for the Mozambique offshore LNG developments.The contract value for Smit Lamnalco amounts to approximately USD 200 million and…

African LNG to Attract $103Bln in 2019

Pic: GECF

With greenfield investments in Nigeria, Egypt, Mozambique and elsewhere reaching nearly $103 billion this year, it is clear that liquefaction is viewed as the most profitable strategy for realizing Africa’s gas potential, said Gas Exporting Countries Forum (GECF).Africa is an exciting frontier in the global natural gas sector. The continent holds 7.1 percent of proven global gas reserves and is expected to contribute nearly 10 percent of global production growth through to 2024.Nigeria accounts for over 50 percent of current LNG production capacity on the continent.

LNG Market Recovers in Q2, Says Flex LNG

Pic: Flex LNG

During the second quarter 2019, spot liquefied natural gas (LNG)  freight rates stabilized and started gradually to recover, says Flex LNG, the owner of LNG carrier vessels and floating storage regasification units (FRSUs).Unseasonably slow demand in Asia over the winter due to fewer heating days caused by warmer weather, and cooler weather than normal in key demand areas early in the summer coupled with ample supply growth from new liquefaction continued to weigh on global LNG prices.The on-going trade dispute between the U.S.

Saipem Joins JV for Arctic LNG2 Project

Image: Novatek

Italian oil and gas industry contractor Saipem reached a deal on Friday to participate in a joint engineering venture for a liquefied natural gas (LNG) project in the west of Siberia.The subsidiary of Eni said in a press release that it has has reached an agreement with Technip France SA and NIPIgaspererabotka to participate in the Joint Venture for the realization of the Arctic LNG2 project.The project has been awarded by Arctic LNG2, a company formed by Novatek JSPC (60%) and Ekropromstroy Ltd (40%).It comprises the detailed design…

Global LNG Demand 16% Up in Q2

Pic: GasLog

Global liquefied natural gas (LNG) demand was 86 million tonnes (mt) in the second quarter, compared with 74 mt in the second quarter of 2018, an increase of 16%, said GasLog Ltd.The Monaco-headquartered international owner, operator and manager of liquefied LNG carriers said that higher European imports (up 110% year-on-year) accounted for most of the growth, while demand from Northeast Asia (Japan, China, South Korea and Taiwan) was flat year-on-year, according…

TechnipFMC: Record Orders, Backlog in Q2

(Photo: TechnipFMC)

Franco-American oil services company TechnipFMC received a record volume of orders in the second quarter, pushing its backlog of projects to a peak thanks to new liquefied natural gas projects, it said on Wednesday.The records could signal a rebound for the company created by a 2016 merger of France's Technip and U.S. rival FMC Technologies to weather the oil price crash that had forced their oil major clients to slash budgets and shelve projects."We achieved record inbound orders in the quarter…

LNG Project Sanctions Set Records in 2019

Graph: Rystad Energy

Rystad Energy expects LNG greenfield investment in 2019 to reach almost $103 billion, which will be the biggest investment year for the burgeoning industry to date.A total of 33 million tpa of liquefaction capacity and $29 billion of Capex has been sanctioned so far this year, from Golden Pass LNG (US), Cheniere’s Sabine Pass T6 (US) and Anadarko’s Area 1 in Mozambique. Over 70 million tpa of capacity and $70 billion of Capex is waiting to be sanctioned in the second half of 2019.

Mitsui, JOGMEC join Arctic LNG-2

Image of LNG Plant: Novatek

Japanese trading house Mitsui & Co and state-owned Japan Oil, Gas and Metals National Corporation (JOGMEC) have signed a sales and purchase agreement with Russia’s Novatek for a 10% participation interest in the Arctic LNG 2 project.The share will be acquired through the Dutch Company, Japan Arctic LNG B.V., in which Mitsui has invested jointly with JOGMEC. The equity ratio of JOGMEC and Mitsui will be set at 75 percent and 25 percent respectively.The project will…

Anadarko Approves $20 Bln Mozambique LNG Project

(File photo: Anadarko)

U.S. energy firm Anadarko Petroleum Corp gave the go-ahead on Tuesday for the construction of a $20 billion gas liquefaction and export terminal in Mozambique, the largest single LNG project approved in Africa, according to the government of Mozambique and energy consultancy Wood Mackenzie.The announcement, which occurred at an event in Mozambique, was widely expected after Anadarko last month flagged the decision date. Officials at Anadarko were not immediately available for comment.The project…

Australia Dominates China's LNG Supply

Offshore Australia: Shell’s Prelude floating liquefied natural gas (FLNG) facility delivered its first LNG cargo earlier this week. Pictured is the Prelude FLNG facility, with the Valencia Knutsen berthed side-by-side (Photo: Shell)

Australia's fast-expanding liquefied natural gas industry has this year been supplying the lion's share of China's growing demand for imports of the commodity, with appetite surging as Beijing shifts away from dirtier fuels such as coal.Australia supplied over 53% of China's LNG imports during the first five months of 2019, shipping data in Refinitiv showed, up from around 40% in 2016 when a previous round of new Australian export projects started to ramp up.With Royal Dutch Shell's Prelude facility delivering its first LNG cargo this week from northwest Australia…

Chinese Buyers Leave US LNG

Graph: Rystad Energy

Chinese buyers have avoided US LNG projects even before the tariffs hiked to 25%, said a report by  Rystad Energy.Despite the Chinese tariffs, there is still appetite for US LNG from other countries. Since the first tariff of 10% was introduced on US LNG in September 2019, the US has signed about 18 million tpa worth of new export agreements with buyers globally.Rystad Energy does not expect to see any new Chinese buyers of US volumes as long as the tariff is in…

EPC Contract Awarded for Mozambique LNG

© Mark Rubes / Adobe Stock

A joint venture between McDermott, Saipem and Chiyoda, has reached full agreement for a contract with Anadarko Petroleum Corporation for the Mozambique Area 1 Liquefied Natural Gas (LNG) Development, McDermott International announced on Wednesday.CCS JV’s project scope includes the onshore engineering, procurement and construction (EPC) for all components of the onshore LNG development, which includes two LNG trains with a total nameplate capacity of 12.88 million tonnes per annum (MTPA), plus the associated utilities and infrastructure.

Oxy Plans to Sell Parts of Anadarko

Deal-makers say most likely sale prospects are Anadarko's offshore assets in the Gulf of Mexico and its pipeline business. (Photo: Anadarko)

Occidental Petroleum snatched up some of the richest shale oilfields in Texas when it beat out rival Chevron Corp in a bidding war to acquire Anadarko Petroleum.It also quadrupled its debt - to $40 billion - at a time when investors are calling for spending cuts and higher dividends.That means the acquisition's success will depend on how quickly Occidental can sell off some of Anadarko's assets and focus on optimizing and integrating the assets it keeps - especially prime U.S.

Total to Discuss Anadarko Assets with Algeria

Total will meet Algerian authorities for talks over its plans to buy Anadarko's assets in the country and is not worried by media reports that Algiers would block the deal, Chief Executive Patrick Pouyanne said on Wednesday."We will meet Algerian authorities very soon," Pouyanne told shareholders at the company's annual meeting in Paris. "We are not worried. It is normal that authorities seek to have dialogue with their principal partners and Total is one of the…

Rovuma LNG Gets Government Green Light


© gt29 / Adobe Stock

The government of Mozambique has approved development plans for the ExxonMobil-led Rovuma LNG project, which will produce, liquefy and market natural gas from three reservoirs located in the Area 4 block offshore Mozambique, two of which straddle the boundary with neighboring Area 1.“The development plan approval marks another significant step toward a final investment decision (FID) later this year,” said Liam Mallon, president of ExxonMobil Upstream Oil & Gas…