Agreement between private parties symbolizes shift of the energy powerbase in the Eastern Mediterranean By Toyin Akinosho
The non-binding Letter of Intent (LOI) between the partners of Tamar field, offshore Israel and Union Fenosa Gas SA (UFG) effectively means that Israel may soon be exporting gas to Egypt.
Which is a symbol of extreme irony. Just two years ago, Egypt cancelled a 20-year natural gas supply contract to Israel, a move which hurt Israel deeply and was widely interpreted as evidence of fraught relations. At the time, Egypt supplied 40% of Israel’s natural gas.
By Sully Manope Seven months after completion of a gas pipeline to Geometric Power’s in Aba Independent Power Project (IPP) in the east of Nigeria, hook up to Shell’s gas facility is still a work in in progress.
The Aba IPP is in its commissioning phase and is scheduled to enter into commercial operations in the 2nd quarter of 2014.
Mechanical works on the 27 km gas pipeline were concluded in September 2013, but commissioning and hook up to Shell’s Imo River manifold facilities in Owaza suffered some setbacks due to differences in design bases between Geometric and Shell.
Angola LNG has announced the sale of its first condensate cargo from its plant in Soyo, the facility built to create value from Angola’s offshore gas resources.
The first cargo was sold to Sonangol on a Free on Board (FOB) Soyo basis and safely loaded onto the M/T Fortune Victoria tanker.
The company’s press release said that “all LPG and condensate products have been committed for sale to the shareholder affiliates of Angola LNG”.
Maximum price for now is $11/Mscf; Sasol’s 10 year old privileges fall away.
A new gas pricing methodology went into effect in South Africa on Wednesday March 26, 2014, following the expiry of parts of an agreement between the state and Sasol, the country’s largest natural gas importer. The old agreement had governed gas pricing since 2004, when Sasol commissioned an 865 kilometre gas pipeline transporting gas from Mozambican fields into South Africa.
Angola LNG has sold its first pressurised domestic butane cargo from its plant in Soyo, the facility built to create value from Angola’s offshore gas resources.
The first cargo was sold to Sonangol Gás Natural Limitada on a Free on Board (FOB) Soyo basis and safely loaded onto the pressurised butane carrier Astrid.
Sales of butane from Angola LNG will be prioritised for the domestic market, with any remaining butane committed for sale – on an FOB Soyo basis – to all of Angola LNG’s shareholder affiliates, for export markets.
The pressurised butane jetty was commissioned immediately prior to commencement of loading operations. Commissioning included the testing of safety devices, mooring arrangements and loading arms. All three jetties (LNG; refrigerated propane, butane and condensate; and pressurised butane) have now been commissioned and used to safely and successfully load cargoes.
Commenting on the first domestic butane cargo Artur Pereira, CEO, Angola LNG Marketing said: “Loading and sale of the first domestic butane cargo marks a further landmark in Angola LNG’s history. This, and future, pressurised butane cargoes will support Angola’s domestic energy needs, to help power the country’s growth and development.”
Angola LNG Limited is an incorporated joint venture between Sonangol, Chevron, BP, ENI and Total that will gather and process gas to produce and deliver LNG and NGLs. The plant has an expected duration of at least 30 years.
Dana Gas operated El Wastani Gas Plant in North Central Egypt, is undergoing a major maintenance and tie-in work programme lasting until March 14, 2014. During the period, the processing plant will be put through a major facility and equipment upgrade to expand its production output capacity by 40 MMscf/d to 200 MMscf/d, a 25% increase.
Siemens Energy will supply two Model SGT5-4000F gas turbines, two SGen5-1000A generators, for use in a 460MW simple cycle power plant in Biskra, on the northern edge of the Sahara, in north eastern Algeria.
Algeria transmits 12,000MW of electricity per day, most of it gas-fired, through the National Transmission grid.
The German supplier will provide technical field assistance during the erection and commissioning phase and provide spare parts for the components through a ten-year long-term parts supply agreement.
Tanzania is on the way to becoming a gas-fired economy. Six hydroelectric stations currently deliver 561MW (or 56.1%) of the country’s installed electricity generating capacity of 1,000MW.
Thermal generation, today, accounts for 440MW of electricity, with 205MW being diesel powered.
But the Mtwara-Dares Salaam gas pipeline, gas processing plants at Madimba in Mtwara and Songo Songo Island in Lindi, as well as two phases of the Kinyerezi Power Plant, will ultimately lead to additional 390MW of gas fired electricity, by 2016.
Gaz du Cameroun (GDC) has successfully completed a new thermal gas connection with glass manufacturer SOCAVER.
The SOCAVER plant is now substantially online and is expected to consume an average of 400,000 scf/d running 24 hours per day, with peak demand estimated at 764,000 scf/d.
GDC is the Cameroon operating subsidiary of Victoria Oil and Gas, the UK based minnow, which now runs a gas processing plant on a small field in Cameroon from which it supplies natural gas to industrial customers.
American independent Anadarko, says it continues to make steady progress, along with its partners, in “marketing LNG sourced from the Anadarko-operated Offshore Area 1 in Mozambique”.
The company has insisted that the first cargo of LNG from the southeasternmost African country will be lifted sometime in 2018. “To date, the partners have reached multiple non-binding Heads of Agreement (HOAs) for long-term LNG sales to buyers in premium Asian markets covering approximately two-thirds of the first 5-million-tonne-per-annum train”, Anadarko says in its fourth quarter 2013 statement.