All articles in the Gas Monetization Section:

Ophir Says Fortuna LNG Will Be One of A Handful of FIDs in 2017

Ophir Energy says that Final Investment Decision for Fortuna “will be one of a handful of global FIDs of a green-field LNG project in 2017”.

Fortuna is located offshore Equatorial Guinea. In November 2016, Ophir signed a Shareholders’ Agreement with OneLNG in November 2016 for the formation of a Joint Venture that will develop and finance the Fortuna FLNG project.
Ophir is excited that the establishment of a Joint Venture with other partners “means we can now move the Fortuna FLNG Project towards FID in mid-2017. At FID, the project NPV will be a healthy multiple of the $120Million of capital we are committing before first gas”

→   Read the rest of this entry

Three New Plants Add 270MMscf/d Capacity to Nigeria’s Domgas Market

By Toyin Akinosho, in Abuja

The Utorogu NAG 2 Plant, a 150MMscf/d capacity gas plant to process Non Associated Gas on the Utorogu field in Oil Mining Lease (OML) 34, has been commissioned.

The Oredo-Obale gas pipeline has been completed, so the 80MMscf/d Oredo gas plant can now supply gas. Also on stream is a 40MMscf/d capacity gas processing plant on the Odidi field in OML 42, the first of two phases, according to David Ige, who was Executive Director in charge of Gas and Power at the NNPC until May 2015.

The combined 270MMscf/d capacity was unlocked between December 2016 and February 2017. Nigeria can certainly do with this volume in its domestic gas market, especially for power, where gas supply has been severely constrained.

But Layiwola Fatona, Chief Executive Officer of the NDWestern Limited, a Nigerian upstream independent which holds 45% equity in the Utorogu NAG 2 plant, says that questions about gas plant commissioning are not the right ones to ask at this time.

“So what? Are you paying for the gas taken and not paid for?” he asks a reporter with Africa Oil+Gas Report. “What is the big deal about commissioning NAG2. Or NAG 3, when no one will pay for the gas being taken?”
Gas producers in Nigeria have, of recent, complained about lack of payment for gas supply to power plants mostly owned by the government.

Dr. Fatona queries: “Are we running a Father Christmas enterprise?”

Egypt’s New Found Energy Independence Will Be Short-lived

Egypt’s insatiable appetite for natural gas will ensure its return to importation of gas in the next six to seven years, according to an analysis of its ongoing projects, new fields and increasing gas demand.
The country became a net importer of the fluid in 2013 after production declines fostered the inability to fuel its power plants, industries and millions of households.
Then almost as dramatically as the shortage began, surplus arrived. Energy companies announced massive gas projects, found huge reserves and helped turn the tide.
The Egyptian ministry of Petroleum announced, late in 2016, a cessation of imported gas from the year 2018, as new projects come on stream to create a net surplus in supply.

Details of the transition from declining reserves to surplus to likely decline are published in the Volume 18, No2, 2017 edition of the Africa Oil+Gas Report

No Field Development Plan (FDP) For Oil Projects Without A Feasible Gas Utilisation Plan

Nigeria’s new-draft National Gas Policy envisages that the DPR, the country’s Petroleum Regulatory Agency, will no longer approve a field development plan for a gas prone oil field, unless there is a clear, feasible gas utilization plan.

This regulation has been in the statute books for over 15 years, but the draft gas policy says it has been weakly enforced.

“We need to be convinced that your gas utilization plan is feasible, that you’re going to work the plan”, Gbite Adeniji, Senior Technical Adviser, Upstream & Gas to the Minister of state for Petroleum, told the November 2016 monthly breakfast meeting of the Nigerian South Africa Chamber of Commerce. “Companies will be encouraged to take advantage of existing nearby infrastructure for their gas utilization plan, instead of coming up with plans that are assembled just to get approval for the oilfield development”.

OB3 Is 80% Completed

By Fred Akanni
Nigeria’s Ministry of Petroleum Resources says that the Obiafu-Obrikom-Oben (OB3) gas pipeline is about 80% completed.
Gbite Adeniji, Senior Technical Adviser, Upstream &Gas to the Minister of state for Petroleum, announced this at the monthly breakfast meeting of the Nigerian South Africa Chamber of Commerce.
But in a twist, Mr. Adeniji implored the audience (comprising of Upstream oil and gas company representatives as well as energy lawyers and bankers), to “pay close attention to and monitor the progress of the construction of this very important pipeline”.
Contract for the construction of the OB3 was awarded in 2011. At 48 inches, it remains the largest diameter pipe size to be built in Nigeria. At 127km in length, starting from the Intermediate Pigging station at Umukwata in Delta State and terminating at Oben Node in Edo State, it is the first gas pipeline, scheduled for the domestic market, to transport gas from the gas rich east of the country to the demand centres in the west of Nigeria.
“For this reason we should all be focused on its completion”, Adeniji insisted. “Let us vigorously engage with it”.

Nigerian Gas Company Splits into Two

By McJohn Adjoto

The Nigerian Gas Company (NGC) has been split into two, in order to take advantage of the emerging gas market.
The two successor companies, both subsidiaries of the state hydrocarbon company NNPC, are known as Nigerian Gas Processing and Transmission Company (NGPTC) and Nigerian Gas Marketing Company (NGMC).

The old NGC operated over 2,000km of gas pipelines all over the country and was responsible for (1), the ongoing looping (doubling of capacity) of the Escravos Lagos Pipeline System, (2) superintending the construction of the Obiafu-Obrikom-Oben (OB3) gas pipeline, as well as (3) work on investment decision regarding the Ajaokuta-Kaduna-Kano (AKK) gas pipeline project, for which bids for Build, Operate and Transfer (BOT) are currently being evaluated.

→   Read the rest of this entry

Nigerian Government to Tweak the Gas Master Plan

By Sully Manope

The Nigeria Ministry of Petroleum plans to do away with the three Central Processing Facilities (CPFs), the centerpiece of the infrastructure segment of the Gas Master Plan.

In their place, “the government will encourage the development of processing plants on an opportunistic basis”, according to Gbite Adeniji, Senior Technical Adviser, Upstream &Gas at the Ministry of Petroleum in Abuja.

→   Read the rest of this entry

TOTAL Will Operate Cote D’Ivoire’s LNG Re-gasification Terminal

A consortium led by French major TOTAL has been awarded the rights to build and operate a liquefied natural gas (LNG) re-gasification terminal in Ivory Coast with a capacity of three million tons per year (3MMTPA).

The decision announced by the Government of the Ivory Coast on October 4, 2016 was followed by the signature of the shareholders’ agreement in Abidjan between TOTAL, which will operate the project with a 34% interest, national companies PetroCI (11%) and CI Energies (5%) as well as SOCAR (26%), Shell (13%), Golar (6%) and Endeavor Energy (5%).

TOTAL will use the terminal to supply LNG volumes from its global portfolio in proportion to its participating interest in the project. The re-gasification terminal project is expected to become operational by mid 2018.

“This project illustrates TOTAL’s strategy to develop new gas markets by unlocking access to LNG for fast-growing economies. Working closely with our partners enabled us to put together an integrated proposal combining LNG supply and import infrastructure through a floating storage and re-gasification unit,” said Philippe Sauquet, the company’s President Gas, Renewables and Power. “We are very pleased to have been selected by the Ivorian authorities to manage this project, which will meet growing domestic and regional needs for gas and power.”

The project involves the construction of a terminal with a floating storage and re-gasification unit (FSRU) in Vridi, Abidjan area, and a pipeline connecting the FSRU to existing and planned power plants in Abidjan, as well as to regional markets connected to the Ivorian network. This will enable Ivory Coast to become the first regional LNG import Hub in West Africa, and to meet both regional and domestic demand.

Oando To Soon Announce Sale of Gas Division to Helios

Oando is in the final stages of selling 75% of what remains in its Gas & Power subsidiary to Helios. This has been the most predicted outcome; of the three bidders for the assets: Helios, Quantum Power and the American equity fund KKR, Helios is the only one already in partnership with Oando in any of its other subsidiaries.

Quantum Power pulled out early in the bid, citing a clause in the bid document that it disagreed with. Not much is heard of KKR’s interest.

Helios will be putting down at least $120Million cash and there are other payments to be made, based on certain conditions precedent, according to sources close to the transaction.

The assets include (1) Central Horizon Gas Company (CHGC), the special purpose vehicle (SPV) set up to rehabilitate and expand the distribution of natural gas in the Greater Port Harcourt Area, in Rivers State; (2) Gaslink Nigeria Limited, the franchise under which Oando distributes natural gas in the greater Lagos area.

Gaslink operates a 20 year Gas Sale and Purchase Agreement (GSPA) with the Nigeria Gas Company and is the pioneering indigenous Nigerian firm in the piping and distribution of natural gas to industrial, residential and commercial consumers.

With this transaction, Helios is involved with Oando, both in the downstream and mid-stream/gas business. In June 2015, Oando Plc agreed to sell 49% of the voting rights and 60% of the economic rights in its downstream businesses to HV Investments II B.V., a joint venture owned by a fund advised by Helios Investment Partners and The Vitol Group, for circa $276Million.

Marathon Pumps Up Eq. Guinea’s Gas Production

By Jonathan Sanussi, in Malabo
American independent Marathon Oil has achieved first gas production through its new Alba B3 offshore compression platform off Equatorial Guinea.

Production from the B3 platform allows Marathon Oil to convert approximately 780Billion cubic feet (or130 million barrels of oil equivalent),of proved undeveloped reserves, more than doubling the Company’s remaining proved developed reserve base in the Central African island nation.

“The Alba B3 compression project will allow us to maintain plateau production for the next two years, mitigating base decline, while extending the Alba Field’s life by up to eight years,” said Mitch Little, Marathon Oil’s Vice President of Conventional resources.

Execution of the Alba B3 compression project involved engineering and construction in four countries with Heerema Fabrication Group (HFG) serving as the general contractor. An unnamed Equatoguinean construction firm fabricated both the platform flare and bridge structures as part of Marathon Oil’s commitment to building local capacity within the country.

Marathon Oil’s wholly owned subsidiary Marathon E.G. Production Limited holds an approximately 65% working interest in the Alba Field and is the operator, while Noble Energy, Inc. another American independent, owns approximately 35%

© 2017 Festac News Press Ltd..

Site by BluQuadrant