All articles in the Gas Monetization Section:


Botswana’s Coal Bed Methane Is Potential Cash Cow

By Sully Manope, Southern African correspondent

Botswana-Magnum-Gas-and-PowerAustralian minnow Magnum Gas & Power sees Botswana’s coalbed methane (CBM) as a far better value proposition than traditional coal, the company’s Chief Executive has remarked. Trent Wheeler says that CBM is a flexible, clean fuel source that can either be used as a gas, or can be converted to diesel or liquid natural gas and can also be compressed and used as a feedstock for ammonium nitrate, which is extensively used in mining explosives in the region.
Magnum Gas & Power has prospecting licenses for Coal Bed Methane over two prospective basins, covering some 2 400 km2 in the country. It also has a Petroleum Exploration Licence(PEL) for conventional oil and gas, covering about 24,300 km2 in Botswana.

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Tanzania’s Gas Policy Prioritizes Domestic Market

Tanzania’s newly approved Natural Gas Policy aims to “ensure that the domestic market is given first priority over the export market in gas supply.”
Gas producers in the country will have domestic supply obligation and localization is emphasized down the value chain.

The country currently generates 450MW of electricity from gas-fired plants, fuelled by reservoirs from marginal, shallow water fields. In the last three years however, deepwater discoveries have displayed the country prominently on the gas map of the planet, with the Tanzanian government official estimates of gas reserves standing at 42.7-trillion cubic feet as of September 2013.

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Nigeria Commissions Thermal Plants Without Fuel Supply

Olorunsogo Plant

By Toyin Akinosho

Goodluck Jonathan, the Nigerian president, has commissioned the second gas-fired thermal plant in two weeks without adequate gas supply.

Like the Geregu power plant he unveiled on October 4, 2013, most of the turbines in the Omotosho II power station will be idle for the next 12 months, according to sources in the ministry of power.

These are two of the 10 National Independent Power Projects (NIPP) under construction all over the country, and the President is scheduled to hop from one power plant to another, launching them in a blaze of publicity. The plants are slated to have been completed by 1st Quarter 2014. But for 60% or more of their overall installed capacity, gas is not assured, so the government’s claims that they would add 5,280MW to the national grid is not assured in the near term, our investigation shows.

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Ghana Embarks On Studies For Gas Development

Ghana is working on commissioning a subsurface to facility study of the entire natural gas demand and supply chain; to fully evaluate the country’s gas reserves, get a hang of the pricing template and the processes required to optimally deliver gas to power plants and other domestic users. The project is being promoted by the Volta River Authority, the main generator and supplier of electricity in Ghana.

The country has always said it will not export a molecule of its gas. But the gas projects it is currently carrying out are ad-hoc, not based on a whole sale national study of needs, supply and availability.

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Nigeria’s LPG Demand In A Growth Surge

Consumption of cooking gas (LPG) in Nigeria has exceeded 150,000 metric tonnes per year(MMTPA), more than doubling the demand five years ago.

In 2008, the national yearly demand was less than 60,000 MMTPA, according to the Nigerian Liquefied Natural Gas(NLNG), the country’s largest provider of the product.

A raft of intense publicity of the value of cooking gas over kerosene and firewood, as well as projects aimed at enhancing the supply of the product, have clearly led to the demand shift.  Some of the entities who have been part of the campaign are Oando, the  integrated energy company and the Lagos State Government.

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Ghana Gets To First Gas In 4th Quarter 2013

Ghana Gets To First Gas In 4th Quarter 2013

Gas Company says no award yet for LPG Plant.
Ghana plans to commission its early production facility for gas by the 4th Quarter of 2013. This is quite a significant slip from the three earlier timelines, first December 2012, second end of 1st Quarter 2013,

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Dana’s Gas Plant Achieves Steady State Cash

Dana Gas Chieftains

Production rate averages 75MMscf/d…while full stream is expected to be 150MMscf/d

Dana Gas PJSC says it has made $ 7.7 million revenue in on its Egyptian Bahrain Gas Derivatives Company “EBGDCo” Natural Gas Liquids (NGL) extraction plant at Ras Shukheir, Egypt.

The company has used $2.8MM, or 36% of the money, to repay the first instalment of the project’s development financing.
NGLs extracted at Ras Shukheir are exported to international customers.

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Domestic Demand Pushes Egypt To Become Gas Importer

Egypt has a problem that’s rare among high volume African gas producers. It has created so much incentive for domestic gas use that, affected by its own success, it has headed on a slippery road to natural gas import.

In spite of holding close to 80Trillion cubic feet of gas reserves, the fourth largest store on the continent, Egypt, by most recent accounts, is so desperate for gas supplies that it already sees itself as a gas importer.

Just yesterday(November 22, 2012), Cairo based Citadel Capital, said it had signed an agreement with Qatari investors to import liquefied natural gas into North Africa’s largest economy.

The agreement is happening two weeks after the Egyptian government itself declared that it would allow liquefied natural gas imports after gas shortages contributed to countrywide power cuts.

On a government to government level, the Ministry of Petroleum and Natural Resources has concluded a deal with Algeria to import approximately 500 million cubic feet of gas daily from Algeria, starting in May 2013.

The details of these transactions are still quite sketchy. For one, the Citadel statement didn’t indicate any regasification plans.  And with regards to the import from Algeria, it wasn’t immediately clear whether this needed a pipeline construction or if there was already a transport route.

Egypt approached Algeria for import to meet its own export contractual agreements amidst a rise in domestic demand. Gas to Power, Industrial consumption, motor vehicles using gas as well as household usage were responsible for consumption of1.65 Trillion standard cubic feet of gas around the country in 2010/2011 year, according to EGAS, the state gas company. It is expected to rise. Currently, Egypt has three liquefied natural gas (LNG) plants and a pipeline to export gas. The LNG Plants include Segas LNG Train 1 in Damietta and Egypt LNG trains 1 and 2 in Idku. Their combined export capacity is close to 600Bcf a year. But in 2010, as domestic demand increased, LNG exports fell to about 354bcf, which was down by 30% from almost 500bcf in 2009.  The government has been using some of the gas destined for exportation to the local market to bridge the energy deficit, which resulted in rolling blackouts in second and third quarters of 2012.


Shell Transforms To A Gas Producing Company

Shell’s equity gas production all over the world will surpass its net oil output by the end of 2012. It is official. “Globally, Shell is focusing more on gas”, says Ubaka Emelumadu, Vice President Gas, Sub-Saharan Africa Shell Upstream International.
Shell is increasing its gas output in places as far flung from one another as Qatar, The Netherlands, Australia, Russia and Nigeria.

Shell Transforms To A Gas Producing Company

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Gas Policy Delays Tanzanian Bid Round

Tanzania has shifted its 4th offshore licensing round further by a few months to allow its parliament enough time to ratify the Natural Gas Policy and Gas Utilization Master Plan. The sale of nine blocks was to have been launched in the first week of September 2012, but the Tanzanian Ministry of Energy & Minerals has called for the delay until the parliamentary session in October 2012, when the government will be presented with the instruments.

The move will allow the policy to be ratified before the start of the new roadshow schedule, which is anticipated to start again soon after the Parliamentary ratification. The gas policy and gas utilization master plan have to be backed up by a Gas Act.

18 companies are working in Tanzania with 26 gas exploration licenses, exploring gas in the country as well as off the country’s coast.

ION GeoVentures, the consultant to the Tanzanian government on the bid round, says  that the bid round data package will be available for review and purchase by September-end.

“Investors will get more time period to evaluate the technical data and assess the prospects of the nine blocks on offer”, the company explains.

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