Gas

South Africa proposes LNG deal for US

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US might help fill South Africa's LNG supply gap. (Image source: Adobe Stock)

South Africa has proposed importing liquefied natural gas from the United States over a 10-year period, likely affected by the US' President Donald Trump's tough tariff measures

The development was announced via a document signed by Minister in the Presidency, Khumbudzo Ntshavheni. It said that South Africa's import limits range around 75 to 100 mn cu/m of LNG per year from the US which remains the leading LNG exporter.

This move is believed to unlock for South Africa approximately US$900mn to US$1.2bn in trade per annum and US$9bn to US$12billion for 10 years based on applicable price.

The arrangement was presented by South Africa during President Cyril Ramaphosa's recent visit to the White House.

Ntshavheni, who was part of the government delegation to Washington, said that South Africa is keen on a US collaboration in technologies, including fracking, to advance gas production in South Africa.

While Mozambique currently serves as South Africa's primary source of gas import, its supply reliability might not remain as solid down the line. The potential deal with the US can help fill this gap.

South Africa is said to have considerable gas resources in the Karoo region, but it remains off limits by a moratorium on shale gas exploration due to environmental concerns.

"(South Africa) and the US will negotiate an arrangement to facilitate LNG imports from the US at the appropriate price. This will not replace our current suppliers of gas but complement those supplies," said Ntshavheni.

Sasol gets modernised power plant with GE Vernova

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Secunda ensures enhanced power supply to the national grid. (Image source: Sasol)

Advancing the modernisation of its Secunda power plant in Mpumalanga, Sasol has ensured enhanced reliability of power supply to the national grid

The energy and chemical company had employed manufacturing firm, GE Vernova, to replace the existing pre-combustor system with a new DLN1+ combustor supplemented by the Fuel Gas Module (FGM) skid. This gave a boost to operational efficiency of the two installed 9E gas turbines, while also reducing carbon emissions. Each gas turbine has been emitting approximately 10,000 metric tons less CO₂since the replacement.

The new combustor has reduced NOx emissions by three quarters from previous levels.

The DLN technology has markedly reduced water consumption.

The modernised plant requires comparatively lesser maintenance, reducing downtime and operational costs.

"This project exemplifies our purpose to electrify the world," said Joseph Anis, president and CEO of GE Vernova's Gas Power business in Europe, Middle East, and Africa. "Building on our advanced combustion technologies, we are helping Sasol address South Africa’s energy needs more efficiently. Together, we are demonstrating how advanced technologies can deliver tangible benefits for both businesses and communities."

Chariot gains operator status offshore Morocco

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Chariot will operate the Lixus and Rissana Offshore licences. (Image source: Adobe Stock)

Chariot has assumed operatorship with a 75% working interest in both the Lixus Offshore and Rissana Offshore licences, with ONHYM keeping its 25% stake

This comes as Energean completes the transfer of their wholly owned subsidiary which held 45% and 37.5% respectively in the Lixus Offshore and Rissana Offshore licences.

The Lixus Offshore licence includes the Anchois gas field where Chariot is heavily invested. Following the drilling of three wells from the field, which did not perform according to expectations, Chariot still hopes to leverage multiple good quality gas bearing reservoirs that were found in the main B sand appraisal interval.

The operatorship will give Chariot greater scope to progress the licence work programmes along with ONHYM to further assess the Anchois development plan based on discovered resources.

Adonis Pouroulis, CEO of Chariot, said, “We are pleased to have completed the transfer of these licences and regained operatorship as we see material value within our diversified Moroccan position, both offshore and onshore. The Anchois gas discovery still offers the potential for a rescaled development and our next steps are to scope this based on the core resources found in the three wells underpinned by our previous work on engineering design, environmental and regulatory approvals, project financing and gas sales. Gas market fundamentals in Morocco are robust with strong gas demand and excellent fiscal terms and we will look to work with all stakeholders, including our partner ONHYM and the Ministry of Energy Transition and Sustainable Development to advance these important domestic projects.”

Dixstone to support LNG facility development in Gabon

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It will be a nearshore type LNG facility. (Image source: Adobe Stock)

Gabon is set to see the development of a mega liquefied natural gas facility for which Dixstone will be delivering a construction, procurement and integration contract for the project in Cap Lopez

It will be a nearshore type LNG facility designed to produce 0.7mn tonnes per annum of LNG and 25,000 tons of LPG per year in the first phase. A gas tanker will be converted to a floating storage and offloading vessel that will have a storage capacity of 137,000 cu/m.

The liquefaction barge will be constructed in the company's new office in Dubai, which has been chosen as a strategic location to extend its 20-year-long vessel conversion experience for clients around the world.

Dixstone will be utilising the Les Chantiers du Gabon yard in Port-Gentil to work with Perenco Oil & Gas Gabon, supporting gas mobilisation activities from the fields it operates on the region. This way, it will also advance local content and support the works at Cap Lopez Terminal.

UAE to fund Nigeria-Morocco pipeline project

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Nigeria-Morocco pipeline project finds new financer. (Image source: Adobe Stock)

After China and the United States, the United Arab Emirates has announced its intention for contribution to funding the US$25bn Nigeria-Morocco gas pipeline project

The country has expressed its interests to build a pipeline for shipping Nigerian gas to Europe through Morocco.

The European Investment Bank (EIB), the Islamic Development Bank (IsDB) and the OPEC Fund will also be financing the project, according to Leila Benali, Morocco’s Minister of Energy Transition and Sustainable Development.

Benali told Morocco’s parliament last week that China’s Jingye Steel Group has been awarded a contract to supply pipes to the project.

“Morocco has completed all preliminary feasibility and engineering studies for the planned gas pipeline that will connect Nigeria to Morocco,” she said to the Moroccan press.

Multiple financing partners

The Southern Dakhla city in the Sahara region marks the starting point of a 5,660-kilometre long pipeline, which will be linked with the pipeline in Nigeria. Dakhla will also be linked to North Morocco, where gas will be shipped to some European markets, the Minister added.

“As for finance, the project has won the support of IDB, OPEC Fund, EIB and the UAE…it will pass through 15 African countries,” she said.

A joint venture between Morocco and Nigeria is on the pipeline to advance the project.

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