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New Energy World
New Energy World embraces the whole energy industry as it connects and converges to address the decarbonisation challenge. It covers progress being made across the industry, from the dynamics under way to reduce emissions in oil and gas, through improvements to the efficiency of energy conversion and use, to cutting-edge initiatives in renewable and low carbon technologies.
Mozambique’s first floating LNG (FLNG) project, Coral Sul, has loaded its first shipment, while Nigeria’s first FLNG facility is a step closer to development following the signing of a front-end engineering design (FEED) contract.
Located in Mozambique’s ultra-deepwater Rovuma Basin, the Coral Sul field is estimated to hold some 450bn m3 of gas reserves. The project, which is being developed by Eni (operator), partnered by ExxonMobil, CNPC, Galp, Kogas and state-owned ENH, loaded its first shipment last week.
The Coral Sul FLNG vessel (pictured) has a gas liquefaction capacity of 3.4mn t/y, with the field’s production sold to BP under a 20-year long-term contract.
Meanwhile, Nigerian company UTM Offshore has signed a front-end engineering design (FEED) contract with JGC Corporation, Technip Energies and Kellogg Brown & Root (KBR) for what will be the country’s first FLNG facility.
Speaking at the signing ceremony last week, Chief Timipre Sylva, Nigeria’s Minister of Petroleum Resources, said that Nigeria’s gas industry had been held back by a lack of investment, transportation and export infrastructure, and technological challenges. He believes the new FLNG project, to be located in block OML 204, is ‘a step forward in the right direction’ for the west African country to develop, exploit and monetise its over 209tn cf of proven gas resources and a potential upside of 600tn cf of gas to ensure energy security, economic growth and reduced emissions.
Sylva stated that gas is expected to play a key role in Nigeria’s energy mix by the year 2060, noting that: ‘LNG and FLNG are becoming even more important in terms of satisfying the world’s future energy needs’. The FLNG market is estimated to increase at a compound annual growth rate (CAGR) of 27.14%, reaching $88.99bn by 2024, he reported.
Julius Dediare Rone, CEO and Chairman of UTM Offshore, added: ‘The world market as we all know it today needs low cost, flexible LNG supply and has limited capacity to underpin major conventional LNG projects. The solution is a standardised FLNG [development] that allows the costs to be 20–40% cheaper with FID [final investment decision] thresholds of just 1.5–2.5mn t/y.’