Top LNG Developments in Africa in Q2 2022 

Connect with us:

LNG tanker. Bigstock.

Liquefied natural gas (LNG) not only represents a cost-effective and readily available hydrocarbon resource, but has also emerged as a critical driver of Africa’s energy transition and overall socioeconomic development.

With over 620 trillion cubic feet of natural gas reserves, Africa stands to unlock new revenue streams, kickstart industrialization and usher in a new era of energy access ahead of COP27 through the production of LNG for domestic use and export. 

With large-scale LNG projects underway across the continent, the second quarter of 2022 has seen several developments take off that are set to transform Africa’s LNG landscape this year and beyond.

Senegal: Modular FSRU Ready for Deployment

In May 2022, KARMOL – a joint venture comprising Turkish power producer, Karadeniz Energy Group and Japanese transport company, Mitsui OSK Lines – announced that the world’s first modular LNG floating storage and regasification unit (FSRU) was fully prepared for deployment in Senegal. Following the conversion of a 125,000m³ LNG carrier into a modular FSRU by GAS Entec, the gas-to-power vessel is set to serve Senegal’s onshore grid. With a capacity to scale from 15 to 300 million standard cubic feet per day, the vessel will be critical in improving electricity access in Senegal.

Senegal/Mauritania: bp Awards Petrofac GTA Services Contract

Following a competitive tendering process, supermajor bp awarded global energy services company, Petrofac, an offshore services contract for the Greater Tortue Ahmeyim (GTA) project in May 2022. Under the terms of the contract, Petrofac will provide personnel, plant and equipment to support offshore operations at the floating production, storage and offloading (FPSO) unit. Two weeks ago, Bourbon Mobility joined Petrofac for GTA offshore services, with a long-standing contract confirmed for the provision of two vessels in aid of marine logistics on the LNG hub terminal. The agreement, initiated in 2021, is expected to last several more months, as construction and facility deployment for GTA wrap up towards the end of 2022. With project co-developer Kosmos Energy announcing that works were approximately 75% complete for phase one of the GTA development, the MSGBC region is set to unlock a wave of investment and associated energy developments on the back of LNG. 

Guinea-Conakry: Construction Launch of Guinea LNG Project

At the end of May 2022, Guinea-Conakry announced the construction of a $300-million phased LNG provision and distribution network, comprising a full-service LNG receiving terminal, a liquefaction plant and an export terminal. The Guinea LNG project, developed by the West Africa LNG Group, will be located at the Port of Kamsar on the northern coast of the country. Following the project’s initiation in September 2019 and subsequent feasibility studies for the LNG terminal, power generated from imported LNG was found to be 25% cheaper than traditional heavy fuel oils used in the country. Now, with the development officially underway and expected to be operational by mid-2023, the west African country is set to usher in a new era of energy security via LNG imports.

Tanzania: Signing of Initial Host Government Agreement

Last month, in Tanzania’s capital city of Dodoma, the government of Tanzania and a consortium made up of Shell, ExxonMobil, Equinor and Ophir Energy signed the initial Host Government Agreement (HGA) for the country’s $30-billion LNG project, set to unlock the east African country’s 57 trillion cubic feet of gas reserves. The initial agreement defines the fiscal, legal and commercial onshore components of the project, while kickstarting negotiations for the project’s phased development. The signing will see the start of Front-End Engineering and Design for the project, with final investment decision expected by 2025.

Mozambique: Coral-Sul FLNG Receives First Gas

Last month, Italian energy major Eni announced that first hydrocarbons have been introduced to the Coral-Sul floating liquefied natural gas (FLNG) facility, offshore Mozambique. Eni, as Upstream Delegated Operator of Area 4, where the FLNG was moored and connected to six underwater productions wells in May 2022, made the announcement on behalf of its partners, namely: ExxonMobil, China National Petroleum Corporation, Portugal’s GALP, South Korea’s KOGAS and Mozambique’s Empresa Nacional de Hidrocarbonetos. With the introduction, the Coral-Sul facility will now be ready to achieve first LNG cargo in the second half of 2022, positioning Mozambique as a strategic African LNG producer and exporter.

Other Reads

Other Reads

Charné Hollands

Charné Hollands

Charné Hollands is the Deputy Editor at Energy Capital & Power. She holds a Higher Certificate in Professional Photography and Masters in Media Studies from the University of Cape Town. Charné writes content for ECP's website and events as well as co-authored African Energy Chamber: Road to Recovery.

More from the Author

Sign up for latest news and event info

Copyright © 2022 Energy Capital & Power. Privacy Policy · Terms of Use