Africa Takes the Lead in Record Year for LNG
Africa is becoming a leader in the next phase of global LNG megaprojects, as this year will see a shattering of previous records for the industry. LNG greenfield investment in 2019 will reach nearly $103 billion, the biggest investment year for the burgeoning industry to date.
Mozambique’s Area 1 and Area 4 projects, the latter of which is expected to secure a final investment decision (FID) from operator ExxonMobil by the end of the year, are making Africa the dominant LNG investment destination this year, with the continent seeing nearly one-third of total greenfield investment. Anadarko’s recent FID for its Area 1 LNG project marks the beginning of a new phase for not only Mozambique and the continent, but for the industry as a whole.
The greenfield CAPEX for the Area 1 project is estimated at $15.6 billion, putting the project in the same league as the major LNG developments in the US, Russia, and Australia. If ExxonMobil’s Area 4 reaches FID this year, that will represent another $14.7 billion in greenfield expenditure in Africa, bringing the yearly total to 28% of the global tally for approved investments in newly sanctioned LNG projects. Area 1 is the largest LNG project that has been sanctioned in Africa to date and will also kick-start the wave of sanctioning activity of other, bigger LNG projects this year.
The Area 1 project, expected to start in 2024 and produce 12.88 mtpa of LNG, will transform Mozambique into a major LNG exporter. A swath of other projects will also contribute to the meteoric growth in domestic gas production.
Among the projects anticipated to reach FID in 2019, Area 1 is the third-largest in terms of greenfield investment. The Arctic LNG project has the largest greenfield capital investment at $25.75 billion, followed by Qatargas LNG with $17.5 billion.
Pranav Joshi is an analyst of upstream research at Rystad Energy. He may be contacted at firstname.lastname@example.org.
UK Leads Global Drop in Operational Production Costs
Global OPEX is falling, and the UK has emerged as a cost-cutting powerhouse among global offshore regions feeling the squeeze of uncertain oil prices. In pursuit of lower unit prices, Rystad Energy says that operators and contractors have begun nurturing operational improvements.
Venture Global Delays FERC Application Filing Date for Delta LNG
The move allows Venture Global further evaluate pipeline route alternatives that could reduce impacts in tidal marsh environments along the Mississippi River.
Saudi Aramco, Sempra Sign IPPA for Port Arthur LNG
The agreement comes 8 months after Saudi Aramco agreed to take a 25% ownership interest in the southeast Texas project. Phase 1 of the project is expected to produce 11 mtpa of LNG.
Don't miss out on the latest technology delivered to your email every two weeks. Sign up for the OGF newsletter. If you are not logged in, you will receive a confirmation email that you will need to click on to confirm you want to receive the newsletter.
15 January 2020
08 January 2020
07 January 2020
09 January 2020