S04 ORA 2 2021 East Africa_ORA Master Template - 2016 New 20/04/2021 11:24 Page 13
G EOG RAPH ICAL ANALYSIS
ISSUE 2 2021 • WWW.OILREVIEWAFRICA.COM
13
MOZAMBIQUE: LNG AND FLNG
PROJECTS MAKE HEADWAY Aligned with the rise of LNG hotspots across the continent, Mozambique is set to become a global gas exporter by 2023, and with robust and progressive gas-focused policies, the country’s gas sector is set to become one of the fastest growing globally by 2040.
D
According to the Africa LNG report, Mozambique is at the forefront of global gas development.
Image Credit: Africa Oil & Power Conference
RIVEN BY NEW and commercial-sized discoveries and progressive policies, African natural gas consumption and production is set to become one of the fastest-growing sectors globally by 2040. While a large share of these resources is yet to be developed, the continent holds a promising future. According to the Gas Exporting Countries Forum (GECF) report: Global Gas Outlook 2050, Africa is expected to increase its share of global marketed gas production from the current 6% to 11% by 2050. Despite project delays initiated by COVID-19, and a temporary market oversupply that has limited capital expenditure leading to new project sanctions, several African Liquified Natural Gas (LNG) projects have been able to progress, positioning Africa as a major LNG competitor globally. As reported in the African Energy Chamber’s (AEC) Energy Outlook 2021, African gas markets have not been insulated from COVID-19, but are less exposed than oil markets as COVID-19 primarily curtailed the transportation sector, in which gas is less used. However, the gas market was already experiencing a market glut due in part to export growth of key producers that accelerated global LNG exports and contributed to
market saturation. Africa’s natural gas consumption is expected to grow at an average of 3.3% per year – to reach approximately 195 bcm in 2025 and up to 380 bcm in 2050, according to Africa Oil & Power’s (AOP) Africa Energy Series: Africa LNG Special Report 2021. Aligned with the rise of LNG hotspots across the continent, Mozambique is set to become a global gas exporter by 2023, and with robust and progressive gasfocused policies, the country’s gas sector is set to become one of the fastest growing globally by 2040. Mozambique has garnered significant international attention due to significant offshore gas
discoveries, equating to approximately 100 tcf and corresponding to large-scale LNG developments, including Total’s Mozambique LNG and ExxonMobil’s Rovuma LNG.
Mozambique LNG, Coral South FLNG and Rovuma LNG Total’s Mozambique LNG project, the country’s first onshore LNG development with a target operational date of 2024, remains on track and managed to secure the largest project financing in Africa to date. CCS JV, comprising Saipem, McDermott and Chiyoda, has signed a deal with ABB to provide a
comprehensive electrical system for the Mozambique LNG field. ABB’s 26-month project will culminate in a significant installed base in Mozambique for ABB and will involve collaboration across multiple ABB divisions and regions, led by ABB in Singapore. Fourteen large onshore electrical houses (ehouses) or prefabricated electrical substation buildings (PESB) – specifically designed for oil and gas applications, will be built by ABB team in Singapore and transported to the Mozambique LNG Project site. Eni’s Coral South was the first project approved by Area 4 partners for developing gas
