Hydrocarbon Processing - June 2021 - GP-9

REGIONAL FOCUS
Africa's floating LNG sector looks to
regain footing post-pandemic
S. OIRERE, Contributing Writer
The drive to harness natural gas reserves in Africa is supporting
low-emissions energy generation and effective monetization
of marginal and small gas fields. This has created space
for investment in floating liquefied natural gas (FLNG) and
floating storage and regasification (FSRU), although the sector
is still in its infancy.
COVID-19 slows gas developments. The pace of natural gas
exploration, production and processing in sub-Saharan Africa
was gaining momentum prior to the COVID-19 pandemic,
which slowed or disrupted project progress in many areas from
early 2020. Due to national lockdowns and restricted international
travel, some gas production and processing operations in
Africa were disrupted or delayed as the project owners and partners
mapped out how to maneuver the pandemic disruption.
Prior to the COVID-19 outbreak, Africa's total proven natural
gas reserves had surpassed 509.6 Tft3
, equivalent to 7.3% of the
world's total proven reserves, according to International Gas
Union (IGU) estimates.
As gas production and processing projects pick up again postpandemic,
interest in the construction and operation of FLNG
facilities is expected to grow in Nigeria, Ghana, Cameroon, Senegal,
Mozambique and Equatorial Guinea. The countries' respective
national oil companies are seeking partnership with midcapacity
independents to launch FLNG systems to gain footing
in global LNG markets and meet local demand for gas supply.
Due to financial constraints and difficulties in mobilizing adequate
investment resources for increased offshore natural gas
production, greater focus has been placed on assets in shallow
waters or onshore, but with capacity to connect them to nearshore
liquefaction facilities. The following sections showcase
projects that are in operation or under development.
Nigeria licenses first FLNG. The emerging FLNG market
in Africa is largely concentrated in countries that have a mix of
ultra-deep and deepwater, midwater and shallow-water natural
gas blocks, with Nigeria becoming the latest to license its first
FLNG project.
The country's State Department of Petroleum Resources
recently awarded a license to establish an FLNG production
facility to indigenous firm UTM Offshore Ltd. The facility
will have a capacity of 1.2 MMtpy and process 176 MMsft3
natural gas and condensate from the mature Yoho field. UTM
Offshore has not specified if it will order a new FLNG unit for
the project or utilize an existing vessel. The project will contribute
to the Nigerian government's initiative to severely curb
gas flaring in the country.
d of
FIG. 1. The Greater Tortue Ahmeyim project, led by BP, Kosmos Energy,
Petrosen and SMHPM, will produce 2.5 MMtpy of LNG at a nearshore
hub on the maritime border of Senegal and Mauritania. Photo: BP.
Gas Processing & LNG | MAY/JUNE 2021 9
Tema LNG ramps up. In neighboring Ghana, a new FSRU vessel
has been developed at the Port of Tema. Owned by Access
LNG, the floating regasification terminal was developed by a JV
of London-based Helios Investment Partners, a leading Africafocused
private investment firm; and German LNG infrastructure
developer Gasfin Development SA.
Unlike FLNG projects that target the development of marginal
and small natural gas reserves, Ghana's floating LNG project
will be used to support electricity generation.
The 95-m FSRU was built at China's CSSC Jiangnan Shipyard
and fitted with two IMO type C tanks for a storage capacity
of 28,000 m3
-160,000 m3
. It was delivered to Ghana in January 2021.
The FSRU's annual regasification capacity is approximately
1.7 MMtpy of LNG, with a lifespan of 20 yr. The FSRU and the
floating storage unit (FSU) have a combined storage capacity of
145,000 m3
.
The Emerging Africa Infrastructure Fund (EAIF) announced
a $31-MM boost for the project after signing an
agreement with Access LNG. The investment will contribute
to reducing carbon emissions from the project, contributing to
Ghana's long-term energy needs, and strengthening its economic
stability and economic development efforts.
According to Ogbemi Ofuya, a Partner at Helios Investment
Partners, the Tema project " ...positions the energy sector in
Ghana for both growth and environmental sustainability so that
when the world recovers from COVID-19, Ghana will have the
energy infrastructure needed to help it compete. "
Hilli Episeyo develops stranded reserves. An FLNG nearshore
the coast of Cameroon has been developed under a partnership
of Golar LNG, Perenco and Cameroon's national oil company,
Société Nationale des Hydrocarbures (SNH). The FLNG
will offer a low-cost, fast-tracked solution for stranded gas projects
that are too small to justify a large-scale LNG development.
Hydrocarbon Processing - June 2021

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