Italian major ENI has signed off on a contract amendment with Yinson Production for a major Non-Associated Gas (NAG) modification project on the FPSO John Agyekum Kufuor (FPSO JAK), operating offshore Ghana.
Under the contract amendment, Yinson Production will undertake the topside modification works to substantially expand the gas handling and processing capabilities of FPSO JAK, reinforcing Ghana’s domestic gas supply.
The primary objective of the NAG modification project is to install gas compression to address expected decreasing reservoir pressures and increase the vessel’s gas export capacity from approximately 210–220Million standard cubic feet per day (MMscf/d) to 355MMscf/d.
As part of the contract amendment, the firm lease period for FPSO JAK will be extended by four years and will now run until 2036.
Following completion of the modification works, the contract amendment will generate an incremental day rate through 2036. This incremental day rate and the 4-year extension to the contract increases Yinson Production’s firm contract backlog by approximately $600Million.
The NAG modification project, expected to be completed by the first quarter of 2028, will involve the fabrication and integration of two key topside modules designed to expand FPSO JAK’s gas-handling capacity. These include the MG2 module, equipped with two gas turbine-driven compressors, and the MC4 module, an auxiliary gas treatment module designed to manage higher gas volumes.
Engineering, procurement, and fabrication activities for the MG2 and MC4 modules will be carried out in compliance with stringent offshore safety and quality standards, ensuring operational continuity and asset integrity throughout execution.
FPSO JAK is owned by a joint venture led by Yinson Production, which holds a 74% controlling equity stake. The remaining 26% stake is held by a Japanese consortium comprising Sumitomo Corporation, Kawasaki Kisen Kaisha, Ltd. (“K” LINE), JGC Holdings Corporation, and Development Bank of Japan Inc. (DBJ).
Are Mozambique’s largest LNG project about to get a green light in 2026?
The Mozambique LNG (Area 1) project, operated by TotalEnergies, is expected to produce approximately 13Million tonnes per annum (MMTPA) of liquefied natural gas.
France’s energy giant TotalEnergies has hit the reset button for the construction of a multibillion-dollar liquefied natural gas (LNG) development off the coast of Mozambique. The reignition comes almost five years after the project was put on ice, with force majeure declared in April 2021. Production is expected to begin in 2029.
ExxonMobil’s Rovuma LNG project -which is even larger-is expected to announce a Final Investment Decision (FID) by year’s end. The facility is expected to include two LNG trains comprising 12 modular liquefaction modules, with total production capacity of approximately18.6 MMTPA total capacity and a targeted startup in 2031. The overall Rovuma LNG development is estimated at roughly $30-32Billion.
Why the sudden urgency to now move ahead? The swift move forward by both TotalEnergies and ExxonMobil is pure market-based. They realize that there is a sharp disconnect between future demand and supply of LNG: future demand is shrinking dramatically and supply capacity is increasing at an alarming rate. Both companies realize that if their projects are not producing LNG sooner rather than later both LNG projects could have their economic value down-graded considerably or their worst fear—vast stranded assets!
Yet both Shell and Bloomberg are predicting that future demand is assured—be it with a few hiccups.
There is strong evidence that demand is shrinking—in particular Asia: China had purchased a large number of LNG contracts and is now re-selling them to various global markets …this is much more than Asian countries re-selling LNG to other Asian countries…no it turning the LNG marketplace into a free-for-all bargain play also involving Europe and North America.
A demand in LNG Growth?
Both Shell and Bloomberg NEF are predicting that global LNG growth will continue—be it with mixed messages.
Shell’s LNG Outlook 2026 is predicting that by 2050 global LNG growth will be nearly 700Million tonnes per year, an increase of 65% from 2025. Demand in 2025 was 422MMTPA.
According to Bloomberg NEF…” Global LNG demand continues to expand through 2035, with growth increasingly shifting from Northeast Asia toward South and Southeast Asia after 2030 … Industrial fuel switching, rising power demand and declining domestic gas imports remain resilient despite falling gas demand”.
For 2035 Bloomberg NEF Global Outlook is predicting a global demand of 600 mtpa.
Institute for Energy Economics and Financial Analysis (IEEFA) has provided an in-depth analysis of the various Asian markets.
China
China, for example, has transformed itself from the world’s largest liquefied natural gas (LNG) buyer into a major global reseller.
According to a September 2026 IEEFA report, authored by Christopher Doleman and Sam Reynolds… “Plateauing domestic demand, a ballooning portfolio of long-term contracts, and a structural pivot by state-owned enterprises into LNG shipping and trading are positioning Chinese companies as significant competitors to traditional suppliers as the market enters a period of historic oversupply.”
The authors continue:
China’s LNG imports have fallen from a peak of 79Million tonnes (Mt) in 2021 to 66Mt in 2025 and are expected to decline further to 63Mt in 2026.
Extensive contracting between 2021 and 2023, during which Chinese buyers signed nearly 60Mt of new supply agreements, has generated a growing surplus of contracted volumes. Total Chinese LNG resales … were likely to be between 17Mt and 19Mt, with South Korea, Japan, and the Netherlands as the leading destinations.
According to the authors, this has provided a surge in flexible long-term contracts, particularly from Australia and the United States Growing flexible volumes from Australia have enabled China to optimize its LNG portfolio across the Pacific region, while US supply has largely been leveraged to capitalize on arbitrage opportunities in the Atlantic region.
IEEFA estimates that Chinese buyers have profited $4.6Billion from Australian and US LNG resales since 2021.
China’s surplus is likely to persist and even grow. With LNG contracts expected to reach 114Mt by 2028 and demand constrained by cheaper alternatives, the country is likely to remain over contracted in the medium term.
IEEFA also points out that— the China National Offshore Oil Corporation (CNOOC) and PetroChina Company Limited (PetroChina), together responsible for most Chinese charterer resales in 2025 —are investing heavily in LNG carrier fleets.
The authors conclude “China’s emergence as a reseller of surplus LNG exposes the fragile assumptions underlying the current wave of LNG export investment. For suppliers, portfolio traders, and aspiring merchant LNG players, the largest LNG demand driver is becoming a competing supplier.”
Domestically LNG in China must cope with rising domestic gas production, pipeline gas imports, coal, and renewable power capacity.
Japan/South Korea /Europe
LNG imports in Japan, South Korea and Europe – which account for more than half of the world’s demand – fell in 2023 and will likely continue falling.
“40 percent of all LNG volumes handled by Japanese companies are sold elsewhere,” according to Sam Reynolds from the Institute for Energy Economics and Financial Analysis (IEEFA). This is up from 16 percent in 2018.
In 2024, Japanese LNG resales were approximately 1.7 times Japan’s total direct imports from Australia, its largest LNG supplier. Resales amounted to around four times the volumes purchased from Malaysia, Japan’s second-largest LNG supplier.
Other countries are also taking steps to curb their imported of LNG: since March 2026 Vietnam, the Philippines, Taiwan and South Korea have cancelled a total of 16Million tonnes of LNG shipments.
LNG Supply
IEEFA expects global LNG supply capacity to rise to 666.5MMTPA by the end of 2028, which exceeds International Energy Agency (IEA) demand scenarios through 2050.
According to IEEFA, global supply of LNG will probably increase by about 40% in the next five years. Robust supply growth will likely lead to lower prices, encouraging an uptick in short-term buying, posing ongoing fiscal challenges and lengthy delays for new gas and LNG infrastructure.
“By the end of 2028, the world’s total nameplate liquefaction capacity could reach 666.5 MTPA. For perspective, the IEA(International Energy Agency) projects total LNG trade in 2050 to reach 482MMTPA under its stated policies scenario. In other words, LNG liquefaction capacity coming online through 2028 exceeds IEA long-term demand scenarios.”
According to the IEA between 2019 and October 2026, more than 15.2Trillion cubic feet of LNG export capacity reached FID, averaging over 2Tcf per year of new capacity annually. This is more than double the average annual rate of capacity approvals during the 2014–2018 period. The United States has been the dominant driver of LNG liquefaction project FIDs, accounting for nearly 55% of the total since 2019. Qatar is a distant second, with around 15%.
Some Concluding Remarks
The marketplace is now gearing up for an LNG turf war in which LNG must try and maintain that it is a fuel of guaranteed security and supply.
Qatar’s LNG production is severely constrained due to the closure of the Strait of Hormuz following the outbreak of the US-Iran war. Normally 77Million tonnes per annum (MTPA) are produced. The current crisis has not only dented Qatar’s reputation, but certainly does not enhance LNG’s reputation as a reliable fuel.
In China LNG must compete with rising domestic gas production, pipeline gas imports, and renewable power capacity.
Japan and South Korea are both starting up their nuclear capacity and using more renewables.
In the past Asia and in particular China was an LNG buyer and has now become an LNG seller.
Closer to home Eni has proven to be a deft operator in Mozambique with its two FLNG projects while TotalEnergies and ExxonMobil are still finalizing their Mozambique strategy.
Gerard Kreeft, BA (Calvin University, Grand Rapids, USA) and MA (Carleton University, Ottawa, Canada), Energy Transition Adviser, was founder and owner of EnergyWise. He has managed and implemented energy conferences, seminars and university master classes in Alaska, Angola, Brazil, Canada, India, Libya, Kazakhstan, Russia and throughout Europe. Kreeft has Dutch and Canadian citizenship and resides in the Netherlands.He writes on a regular basis for Africa Oil + Gas Report, and is a guest contributor to the Institute for Energy Economics and Financial Analysis (IEEFA). His book ‘The 10 Commandments of the Energy Transition ‘is on sale at https://books.friesenpress.com/store/title/119734000211674846/Gerard-Kreeft-The-10-Commandments-of-the-Energy-Transition
Algeria’s Methyl Tert-Butyl Ether (MTBE) production plant is undergoing its phased gradual commissioning and entry into production, which began in June 2026.
Built across a 114,000-square-meter site inside the Arzew industrial zone in Oran, the project is designed to produce 200,000 tonnes of MTBE per year, converting roughly 75% of locally produced methanol from the Arzew complex into MTBE. MTBE is a critical additive for manufacturing unleaded gasoline.
The facility represents a major pillar in Algeria’s broader strategy to maximize downstream petrochemical sovereignty and reduce foreign currency expenditure.
By shifting from an importer to a producer, the facility will eliminate Algeria’s need to import MTBE (which previously cost the country roughly $170Million annually) and allow for surplus exports.
In the oil, gas, and petrochemical sectors, “commissioning” is a multi-month phase where systems, pipelines, and control rooms are tested with actual feedstock. A formal inauguration ceremony typically takes place after the plant successfully finishes these test runs and achieves stable, continuous commercial production.
The most recent high-level state event at the site occurred when Prime Minister Sifi Ghrieb officially inspected the MTBE unit’s progress and toured its central control room. During that same visit, he launched the neighboring Continuous Catalytic Reforming (CCR) naphtha unit.
SLB OneSubsea™ joint venture has been awarded a contract by ExxonMobil Moçambique, Limitada, on behalf of its Area 4 partners, (ENH, CNPC, ENI, KOGAS and XRG), to deliver subsea production systems for the first phase of the offshore Rovuma LNG project in Mozambique.
The contract scope includes the delivery of subsea trees, manifolds, umbilicals and associated control systems designed to support efficient production from the deepwater field. SLB OneSubsea will provide engineering, procurement, manufacturing, along with installation services, leveraging its experience in delivering subsea systems for complex deepwater developments worldwide.
The Rovuma LNG project will deliver an 18Million Tons Per Annum (18MMTPA) LNG project from reservoirs in the Mamba Field: a massive deepwater gas accumulation discovered by ENI in in 2011.
SLB OneSubsea intends to establish a services base in Mozambique in support of the project and to serve operators across the region. The facility will create local training and employment opportunities, while supporting the development of regional supply chains.
“This award reflects our ability to deliver integrated subsea solutions that help customers accelerate development and maximize value from deepwater resources,” said Mads Hjelmeland, chief executive officer, SLB OneSubsea.
French major TotalEnergies (40%, operator), together with its partner AMNI (60%), have taken the Final Investment Decision (FID) for the development of the Ima gas field, straddling the Oil Mining Leases(OMLs) 112 and 117 offshore licenses in Nigeria.
Located in shallow waters close to Bonny Island, the Ima gas field will be developed with a single platform, connected through a 22 kilometre pipeline to Nigeria LNG (15%, TotalEnergies).
Production start-up is expected in 2028, with a plateau of 350Million cubic feet per day (representing over 60,000 barrels of oil equivalent per day). Once on stream, the Ima field will supply about one-third of the gas required for the ongoing Nigeria LNG Train 7 expansion project, which will increase the liquefaction plant capacity from 22Mllion tons per annum (MMTPA) to 30MMTPA
“Ima is a low-cost and low-emissions development, with a simplified platform design, electric power supply from shore, no flaring, and permanent methane detection and monitoring”, TotalEnergies says in the statement.
The company explains that the project, developed in partnership with the Nigerian company AMNI, “is characterized by strong Nigerian content, with all key contractors being local companies”, with around 60% of the workforce expected to be sourced from host communities during the project development.
“After the Ubeta project, sanctioned in 2024 and expected to start-up next year, Ima demonstrates again our ability to unlock new low-cost and low-emissions gas resources, following the incentives introduced by the Nigerian Government for non-associated gas developments”, saidNicolas Terraz, President Exploration & Production at TotalEnergies.
TotalEnergies has signed an agreement to commit $10Million more to fund employment promotion and income-generation programmes in the districts of Palma and Mocímboa da Praia, in Mozambique’s gas rich Cabo Delgado province, under a partnership with the Northern Integrated Development Agency (ADIN).
The French major’s memorandum of understanding with ADIN expands on programmes and projects that TotalEnergies and its Mozambique Liquefied Natural Gas (LNG) partners established under the auspices of the Mozambique LNG Foundation with a $200Million endowment budget. That foundation was established in 2022, after an independent human rights and security review, following the Islamic insurgent attacks on Palma, the largest town in Cabo Delgado, in 2021.
TOTAL is leading the development of 13Million Tons Per Annum LNG facility in Afungi Peninsula, which sits along the coast within Palma, close to the town of Palma and the offshore Rovuma Basin. The French major is the operator of Area 1 acreage, the deepwater block from which gas molecules will be extracted to feed the liquefaction plant under construction at Afungi.
“The new funding plan aims at supporting improvement of living conditions for local communities and stimulating economic activity across both districts”, ADIN says in a statement.
The Mozambique LNG foundation has earlier reportedly created more than 8,000 local jobs and granted direct economic support to over 7,000 farmers and fishermen. The programme has funded local paving projects, a 1.7kilometer connector road in Palma, and is rolling out 28,000 solar kits alongside electric mobility solutions to empower local youth micro-entrepreneurs. It has focused heavily on the socio-economic recovery and development of local communities across the conflict-affected Cabo Delgado province, particularly the districts of Palma and Mocímboa da Praia.
ADIN says that its own new $10Million partnership programme will cover sectors including agriculture, livestock, fisheries, agro-processing, infrastructure development, biodiversity conservation, and cultural promotion, alongside measures to strengthen community resilience. Within the agricultural component, support is planned for cooperatives to boost production, improve processing, and facilitate market access, with particular focus on creating employment opportunities for young people.
The programme also envisages the construction and rehabilitation of tertiary roads, with the objective of improving population mobility and facilitating the transport and distribution of produce to local markets. Minister of Planning and Development Salim Valá said the initiative could help drive economic and social development in Cabo Delgado and unlock the region’s productive potential.
Jacinto Loureiro, ADIN Executive Commission President said the memorandum is aligned with national development policies and should contribute to the creation of new economic and employment opportunities for the populations concerned.
ExxonMobil has awarded approximately $1.1Billion in pre-investment contracts for critical long-lead equipment destined for the first phase of the Rovuma Liquefied Natural Gas ( LNG) project in Mozambique’s gas rich province of Cabo Delgado.
The project entails development of significant offshore natural gas reserves in Area 4 and the construction of an onshore liquefied natural gas facility, with a planned production capacity of 18.6Million tonnes per year.
The largest contract was awarded to OneSubsea UK Limited and OneSubsea AS, companies specialising in the supply of subsea production systems, control systems, and umbilicals. Engineering, procurement, manufacturing, and production work will be carried out with the support of Aker Solutions Mozambique, in-country.
Advanced Technology Valve S.p.A also won contracts. They will be in charge of the engineering, procurement, manufacturing, testing, and delivery of large-diameter production valves, and to Corinth Pipeworks Pipe Industry Single Member S.A., for the manufacturing, coating, testing, preservation, and storage of submerged-arc welded pipes.
Sumitomo Corporation of America received a contract for the manufacturing, coating, testing, preservation, and storage of seamless pipes. Zhejiang Jiuli Hi-Tech Metals Co., Ltd. will be responsible for the manufacturing and supply of mechanically lined pipelines, induction bends, weld-overlay products, and associated pipeline systems.
‘The award of these contracts represents another important step forward for the Rovuma LNG project and reflects the strong commitment of the Area 4 partners to the responsible development of Mozambique’s world-class natural gas resources,’ said Johanna Boothey, Managing Director and Chairperson of ExxonMobil Mozambique.
‘By securing critical long-lead equipment, we are positioning the project for efficient execution and supporting the long-term economic potential of this strategic investment for Mozambique,’ Boothey added.
The contracts will allow suppliers to begin early manufacturing of materials that require large production volumes and specialised equipment, some of which carry extended lead times. Awarding the contracts ahead of FID is designed to optimise the project’s execution schedule and ensure the timely availability of critical infrastructure..
ExxonMobil awarded those contracts on behalf of the Area 4 partners — Empresa Nacional de Hidrocarbonetos (ENH), China National Petroleum Corporation (CNPC), ENI, Korea Gas Corporation (KOGAS), and XRG.
Tetra4, developer of the Virginia Gas Project in South Africa, has entered into an additional take-or-pay contract to supply liquified natural gas (LNG) to a domestic food processor, establishing a multi-year contracted cash flow supporting Phase 1 commercial operations, which remain targeted for completion in the third quarter (3Q) of 2026.
The LNG sale and purchase agreement, which is a five-year take-or-pay contract, is priced at greater than $16 /GJ (0.9478 MMBtu) of LNG, (~$16 per Thousand standard cubic feet (Mscf)) at current exchange rates.
Tetra 4 is a South African subsidiary of Renergen and the Virginia Gas Project is located in the country’s Free State province.
Following the execution of this contract, Renergen has now secured take-or-pay contracts to support approximately 75% of the LNG volumes anticipated from Phase 1.
Renergen is in discussions with multiple other potential customers and expects to complete contracting for Phase 1 volumes for both the liquid helium and LNG produced from Phase 1 during 3Q 2026. The Company expects to complete contracting for Phase 1 during 3Q 2026 and commence contracting for a significant portion of the expected Phase 2 volumes during the second half of 2026.
“The associated LNG produced from the Virginia Gas Project is welcomed by local industrial businesses to support their energy needs”, says Paul Mann, Executive Chairman and Chief Executive Officer of ASP Isotopes, the parent company of Renergen. “ We look forward to completing the construction of Phase 1 and, in addition to supplying domestic customers with LNG, starting to supply international customers with liquid helium at a point in time when geopolitical issues have greatly constricted the supply of this critical material.”
Phase 1 is expected to produce approximately 2.5MMscf/day of LNG and approximately 70 Mscf/day of liquid helium, with commercial production expected to commence during the third quarter of 2026.
Renergen founders purchased the exploration and gas rights for the 187,000-hectare area near Virginia, Welkom, and Theunissen in the Free State in 2012. The initial gas discovery occurred in 2014, when exploration campaigns first tapped into significant biogenic methane and helium reserves trapped within the deep faults of the Witwatersrand Supergroup. This led Tetra4 to secure South Africa’s first onshore petroleum production right, transforming the site into the nation’s first commercial liquefied natural gas (LNG) and liquid helium plant.
Between 2019 and 2020, Tetra 4/Renergen initiated a highly successful horizontal appraisal drilling programme. On December 10, 2019, an inclined well intersected gas-charged sandstone, flowing over 850,000 standard cubic feet of gas per day to the surface.
At an assumed sale of $15–18 per Mscf for LNG and an average of $600/ Mscf for liquid helium, Renergen should be capable of generating revenues of over $27Million on an annualized basis following the expected completion of Phase 1. The Company expects to begin recognizing these revenues during the second half (2H) of 2026, ASP Isotopes says in a release.
The Company is in active discussions with additional potential customers regarding offtake of both LNG and liquid helium from both Phase 1 and Phase 2.
The consortium involving Technip Energies will not be in the lead to build the largest Liquefied Natural Gas facilities in Africa.
The award of the Letter of Intent (LoI) for engineering and limited procurement services to construct ExxonMobil’s 18.6Million tonnes per annum (18.6MMTPA) Rovuma LNG facilities in the Afungi Peninsula in Cabe Delgado, Mozambique, went to Saipem, McDermott, Daewoo Engineering & Construction and China Petroleum Engineering & Construction Corporation (CPECC)-namely the SMDC joint venture.
The Rovuma LNG plant project is expected to include 12 liquefaction modules, fed by gas from the huge, deepwater Mamba complex in Area 4.
The American contractor, McDermott, a key partner in the SMDC Joint venture, says that engineering of the project will be executed by McDermott from its London, UK, and Gurgaon, India, offices, with project management seconded to a team based in Milan, Italy.
“Having successfully executed front-end engineering and design (FEED) for Rovuma LNG, we are well positioned to advance the project into its next phase,” MccDermott says in a media statement.
ExxonMobil is widely expected to take Final Investment Decision (FID) on the project in 2026. The onshore plant will harvest a large fraction of the 75Trillion cubic feet of gas stored in reservoirs located in >2,000metre water depth, in the Indian Ocean. The several postponements in the schedule have been to allow for further security stabilization in the Cabo Delgado region and to finalize project adjustments, according to ExxonMobil.
As the Floating Liquefied Natural Gas (FLNG) vessel Hilli Episeyo officially departs Cameroon for its 20-year charter in Argentina in July 2026, the country’s maritime LNG export operations will temporarily shut down, but rather than shutting down the offshore wells, Perenco and the state-owned Société Nationale des Hydrocarbures (SNH) are redirecting and repurposing the gas from the Sanaga South and Ebomé fields.
Unprocessed natural gas will bypass the ocean mooring and be piped entirely to the Bipaga Gas Processing Centre on the mainland.
In the event the processing centre will increase the extraction of Liquefied Petroleum Gas (LPG/butane), heavily targeting the state-subsidized domestic cooking gas market to reduce Cameroon’s reliance on fuel imports.
The Bipaga Gas Processing Centre came on stream in 2024, supplying natural gas through a dedicated .27-kilometre pipeline to the Keda Cameroon Ceramics Ltd manufacturing plant. The plant consumes up to 6Million standard cubic feet per day (MMscf/d) under a 20-year gas sales contract signed between Perenco and SNH.
