Gas

Rovuma LNG plant aims production capacity of 18 mtpa. (Image source: Adobe Stock)

Technip Energies and JGC Corporation have been awarded the front-end engineering design (FEED) contract by ExxonMobil – on behalf of Mozambique Rovuma Venture (MRV), a joint venture of ExxonMobil, Eni, and CNPC – for the Rovuma LNG project at Palma in the Afungi peninsula, Northeast of Mozambique 

The Rovuma LNG project will consist of an LNG plant with a total production capacity of 18 Mtpa, comprising 12 fully modularized LNG trains of 1.5 Mtpa each. The plant design will feature electric-driven LNG trains instead of gas turbines, reducing greenhouse gases emissions compared to conventional LNG projects. It will also include prefabricated and standardized modules to be assembled at the project site in Mozambique, offering cost competitiveness and certainty in delivery schedule.

Mario Tommaselli, SVP Gas and Low Carbon Energies of Technip Energies, said, “We are honored to have been selected by ExxonMobil and its partners to design the Rovuma LNG project. By leveraging our expertise in modularization and electrified LNG, we are committed to support ExxonMobil and its partners towards final investment decision, as well as strengthening our presence in Mozambique to contribute to long-term economic growth and its ambition to become one of Africa’s leading LNG exporters.” Farhan Mujib, Representative Director, President of JGC, commented: “We are pleased to have been awarded by ExxonMobil and its partners, large-scale and environmentally efficient LNG Project in Mozambique. With the global focus on decarbonization and energy security, the JGC Group is accelerating the promotion of energy transition, and this project is firmly in line with the direction of our strategy. We are convinced this project of national significance will contribute to enhance economic and industrial growth in Mozambique and East Africa."

NNPC is leveraging Gastech to advance decarbonisation and LNG promotion. (NNPC Ltd)

The Nigerian National Petroleum Corporation Ltd is leveraging the Gas Technology Conference and Exhibition (Gastech) in Houston to initiate discussions with investors for the revival of the Brass and Olokola LNG projects

Once operational, these multi-billion dollar projects will significantly benefit the economy of the country through job creation, power generation, revenue generation and economic diversification. This development was announced by the corporation's chief financial officer, Umar Ajiya, on the sidelines of Gastech.

“In the past, gas prices went down, the economics of the projects meant a high capital expenditure (CAPEX) and this was a dis-incentive for investors and partners. Also, there was slow decision-making by the political class," said Ajiya. Defining the NNPC Ltd as commercially driven, he expressed the corporation's urgency to capitalise on Nigeria's abundant through gas resources smart decisions to bring partners to the table. The corporation has seen impressive profits in the 2023 financial year. 

Investor incentives

Noting President Bola Ahmed Tinubu's role in driving new projects through the Presidential Executive Orders on oil & gas reforms, he said, "We are also happy to have the Petroleum Industry Act (PIA) [that] has provided fiscal incentives for investors and is creating the enabling environment that has rekindled hope in the energy sector.”

According to Ajiya, the NNPC Ltd is utilising the Gastech exposure to advance decarbonisation of the Nigerian oil & gas operations through new technologies, as well as globally promoting its LNG resources. 

The Ubeta Field, which is being developed by TotalEnergies, remains one of the latest high-profile gas projects in the country. 

The EPC contract amounts to US$1.6bn. (Image source: Adobe Stock)

Golar LNG Limited has signed an engineering, procurement and construction (EPC) agreement with CIMC Raffles (CIMC) for a MK II Floating LNG Production (FLNG) vessel with an annual liquefaction capacity of 3.5 mn tons of LNG per annum

Under the agreement with CIMC, Black & Veatch will provide its licensed PRICO technology, perform detailed engineering and process design, specify and procure topside equipment and provide commissioning support for the FLNG topsides and liquefaction process, similar to Black & Veatch’s role in the construction of Golar’s existing assets, the FLNG Hilli and FLNG Gimi.

The Golar MK II design is an evolution of the MK I design of FLNG Hilli and FLNG Gimi and is also based on the conversion of an existing LNG carrier to an FLNG. The MK II design allows for a modularisation of the construction process as well as further efficiency and operability advances based on learnings from previous experience on constructing and operating our existing FLNG assets. The project will utilise the Golar-owned LNG carrier Fuji LNG with a storage capacity of 148,500 m3. The total EPC price is US$1.6bn. The total budget for the MK II FLNG conversion is US$ 2.2 billion, inclusive of the conversion vessel, yard supervision, spares, crew, training, contingencies, initial bunker supply and voyage related costs to deliver the FLNG to its operational site, excluding financing costs. The MK II FLNG is expected to be delivered in Q4 2027. Out of the total conversion price, Golar has already spent US$ 0.3 billion to date inclusive of the conversion candidate, engineering and long lead items which are now 63% complete.

Yard selection for the MK II FLNG conversion was concluded two years ago. CIMC, Black & Veatch and Golar have subsequently spent approximately 350,000 man-hours optimizing the conversion process and de-risking project execution. As part of the EPC agreement Golar has also secured an option for a second MK II FLNG conversion slot at CIMC for delivery within 2028.

The 2027 delivery makes the MK II FLNG the earliest available floating liquefaction capacity globally. Based on potential charter terms in line with the most recent long term FLNG charter agreements, the MK II FLNG has earnings potential of approximately US$ 0.5 billion of adjusted annual EBITDA, before commodity exposure.

Golar CEO, Karl Fredrik Staubo commented, “We are pleased to announce the ordering of a MK II FLNG, a significant milestone for Golar and our partners CIMC and Black & Veatch. The ordering of the MK II FLNG strengthens Golar’s position as the market leading owner of FLNGs, increasing our controlled liquefaction capacity by about 70% to 8.6 MTPA. With a delivered price of around USD 600/ton of liquefaction capacity and an attractive Q4 2027 delivery, we believe today’s FLNG order is well positioned to offer prospective clients an attractive time-to-market to enable gas monetisation, whilst driving value for Golar. We look forward to working with CIMC and Black & Veatch towards another successful FLNG delivery and hope to further expand the relationship with potential additional MK II FLNG units.”

Wang Jianzhong, CEO and president of CIMC Raffles, said, “The signing of this new project further solidifies CIMC’s leadership position in offshore projects. It demonstrates CIMC’s ability to handle large, complex projects that meet the highest industry standards. CIMC will continue to focus on the independent development and manufacturing of high-end offshore equipment, committed to providing high-quality, innovative solutions for the global energy market.”

Black & Veatch’s Fuels & Natural Resources sector President Laszlo von Lazar said “We are pleased to be working with CIMC and Golar on the MK II FLNG, following our support for Golar’s two previous Floating LNG assets. The MK II represents our 6th floating LNG project to take a final investment decision utilizing our industry leading PRICO® liquefaction technology. The MK II demonstrates a clear commitment to reliable, consistent energy through Floating LNG, to help meet global demands during the energy transition.”

Tecnimont and Tenaris teams. (Image source: Tenaris)

Tecnimont (MAIRE Group) has entrusted Tenaris with the supply of more than 24,500 tons of seamless pipes for a major gas project located in North Africa

Pipes will be delivered along with Tenaris’ One Line services, a project management package which integrates the supply of pipe with additional services optimising efficiencies across the supply chain. The project includes a three-layer polyethylene (3LPE) coating applied to the entire order at the Tenaris’ coating facilities in Italy. First deliveries are scheduled for 2025.

Uninterrupted supply of natural gas

“This project holds strategic relevance in ensuring a reliable and uninterrupted supply of natural gas to Italy and, subsequently, to Europe, as a whole. For such an important project, which recognises the Italian value chain, we’ve selected the solid capabilities of a leading manufacturer such as Tenaris, that can guarantee high-quality products and services and fast-track supply from its Italian operational sites. We have a history of efficient collaboration with Tenaris, marked by professionalism and reliability. Therefore, partnering with Tenaris for this project was a natural choice for us,” said vice president of group procurement at MAIRE Group, Giovanni Sola.

“This agreement marks a milestone in our relationship with Tecnimont achieved thanks to strong teamwork. Tenaris' reliability and efficiency from an early stage created the conditions to secure this supply after the agreement closure. Our unique solutions that integrate pipes and coating allowed us to grant the security of supply and fast track deliveries needed for such a complex project," said commercial senior director for downstream at Tenaris, Simone Baietta. 

North Africa has been at the heart of oil & gas innovations witnessing recent developments in flaring management and land acquisition system to name a few.