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A $2Billion Fertiiser Plant Planned for Angola, with Funds from Afreximbank

A consortium of Angolan companies plans to invest $2.2Billion in an industrial fertiliser complex expected to be completed in 2026.

Grupo Opaia SA, a large, indigenous Angolan enterprise, is driving the project, with Sonagás, a subsidiary of the state hydrocarbon company Sonangol, as key partner.

The facility, designed to produce granulated urea, is the first unit of its kind built in Angola and southern and central Africa, according to a statement from the promoters.

The project will be funded by a consortium of banks led by Afreximbank, which will disburse the loans over the nearly four years of construction of the complex, due to be concluded in the third quarter of 2026, Grupo Opaia says in a release

The factory is to be sited in Soyo, a city located at the mouth of the Congo River, which also hosts the Angla LNG plant. It will have the capacity to produce 3,500 tonnes of urea a day, supplying the domestic market and plugging the deficit of 1,200,000 tons of fertiliser in the Southern African region, including South Africa, Botswana, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Democratic Republic of Congo, Seychelles, Swaziland, Tanzania, Zambia and Zimbabwe.

Some of the output will be exported outside the African continent, to countries in Latin America, Grupo Opaia explains.

 

 


NNPC, Sahara JV May Construct Jetties across West Africa for LPG Supply

WAGL Energy Limited, a joint venture business operated by the Nigerian National Petroleum Company (NNPC) Limited and Sahara Group, is set to develop and construct jetties across West African countries to boost the supply and penetration of Liquefied Petroleum Gas (LPG) in the sub-region.

Emmanuel Ubani, Managing Director, WAGL Energy Limited said discussions were already at advanced stages for the first in the lot, adding that WAGL had embarked on developing infrastructure to take beneficial advantage in the emerging energy transition era.

While acknowledging growing LPG demand in Africa, Ubani advised elements that make up the enabling environment for LPG utilization include infrastructure -both liquefaction and regasification plants, gas distribution, pipelines and/or gas distribution trucks, cylinder distribution and/or segmented local distribution to individual houses and industries

“All parts of the value chain must be in place and functional, that is, a distribution system to enable feasible access for the users must exist, a ready and vibrant market network and most importantly, acceptable and accommodating uses of the alternative energy source. Ensuring this requires both public and private investments at a level that allows for economies of scale, supporting in making the sector commercially viable. Sufficient attention on policy and strategic level, with clear responsibility allocation and appropriate regulation of the sector, is required.”

Ubani said nations seeking to lead energy transition across the continent would need to massively de-risk and promote more private sector investment, a step he described as very critical.

“Governments need to do a great job at providing an enabling environment for the sector to thrive. They need to take advantage of the abundancy and competitiveness of renewables and also support systemic innovation, especially as it affects the changing energy mix,” Ubani advised.

 


Egypt Plans to Put out the Flares with Baker Hughes’ flare.IQ Technology

PARTNER CONTENT

Egyptian General Petroleum Corporation and Baker Hughes Partner to Reduce Emissions from Flaring Operations

  • Baker Hughes’ flare.IQ technology to support Egypt’s decarbonization targets by managing and reducing methane emissions at an Alexandria-area refinery
  • Flare emissions management project is Phase 1 of wider flare recovery initiative in Egypt
  • Partnership marks first downstream deployment for flare.IQ in Egypt and comes ahead of COP27 in November 2022, to be hosted in Sharm El-Sheikh

Baker Hughes and Petrosafe, a subsidiary of the Egyptian General Petroleum Corporation (EGPC), have announced a contract that will mark the first deployment of Baker Hughes’ flare.IQ technology in refinery operations in Egypt to help reduce emissions from oil and gas flaring operations.

This initial phase of a broader flare recovery partnership will be implemented at the APC Refinery in Alexandria. The Egyptian Ministry of Petroleum and Mineral Resources (MoPMR) aims to reduce emissions and improve the efficiency of oil and gas operations as part of its ambitious aim to reduce greenhouse gas emissions from this sector.

Methane is one of the most harmful forms of emissions — 86 times more potent than carbon dioxide over a 20-year period*. Incomplete combustion of flared gas is one of the major source of methane emissions across the oil and gas industry. By using flare.IQ technology from Panametrics, a Baker Hughes business, EGPC will further digitalize its emissions management infrastructure and pull critical information about its flare systems, substantially reducing emissions by ensuring a higher-efficiency flare combustion rate.

The contract comes at a significant moment as Egypt prepares to host the 27th UN Climate Change Conference (COP 27) in November and contributes to the Global Methane Pledge.

“Our flare recovery partnership with Baker Hughes is an important step in Egypt’s Petroleum Sector Modernization program as we start implementing MoPMR projects included within Egypt’s Climate Change Strategy 2050, as announced in May 2022,” said H.E. Tarek El-Molla, Minister of Petroleum and Mineral Resources. “Phase one of the partnership, the deployment of flare.IQ, will support our flare recovery ambitions, which is one of our Nationally Determined Contributions (NDCs), in support of the Paris Agreement objectives. We look forward to seeing the impact of flare.IQ help improve the quality of life for residents near the Alexandria plant and anticipate extending the scope to include other refineries across Egypt.”

“Better understanding and managing emissions is central to the oil and gas industry’s efforts to reduce greenhouse gas emissions. Our partnership with MoPMR demonstrates how Baker Hughes continues to collaborate with our customers in taking positive action in emissions management,” said Rami Qasem, executive vice president of Digital Solutions at Baker Hughes. “This partnership with MoPMR supports its ambitious low-carbon strategy, and further underlines Egypt’s commitment to be at the forefront of tackling emissions in the oil and gas sector, as we approach COP 27.”

The contract follows the memorandum of understanding that was signed by the two companies in February 2022. The partnership between Baker Hughes and EGPC aims to establish and drive a flare recovery initiative to support emissions recovery and reduction across Egypt’s upstream and downstream oil and gas operations.

A Baker Hughes Statement says: “Part of the Baker Hughes Climate Technology Solutions portfolio, flare.IQ is fast, accurate, reliable, easy to deploy and cost effective. It has a proven track record in optimizing flare operations, achieving steam savings and significantly reducing methane emissions”.

 


Coral South Introduces Hydrocarbons to FLNG Offshore Mozambique

The Coral South Project has achieved the introduction of hydrocarbons to the Coral Sul Floating Liquefied Natural Gas (FLNG) plant from the Coral South reservoir offshore Mozambique.

“Following the introduction of gas in the plant, Coral Sul FLNG will now be ready to achieve its first LNG cargo in the second half of 2022, adding Mozambique to the LNG-producing countries”, according to a statement by the Italian player ENI, the Upstream Delegated Operator of Area 4, on behalf of its partners ExxonMobil, CNPC, GALP, KOGAS and ENH.

“Hydrocarbons introduction comes after the safe and timely conclusion of the offshore commissioning activities”, ENI said. “The FLNG arrived at the final operating site offshore Mozambique in early January 2022; mooring and connection to six underwater production wells were finalized in March and May 2022, respectively”.

The Coral South project achieved Final Investment Decision in 2017.

“FLNG fabrication and construction activities started in September 2018 (Hull first steel cut), and were completed in 38 months as planned, despite the Covid-19 pandemic, with a FLNG Sail Away, from South Korea to Mozambique, on November 2021”, the statement added. “While performing the construction activities in Korea, several significant activities were undertaken in Mozambique, with support from the Mozambican authorities, including the ultra-deep waters (2,000m wd) Drilling and Completion and Offshore Installation campaign that involved the highest technological and operational skills.

“Coral-Sul FLNG has been implemented with an energy optimization approach, integrated in the design via a systematic analysis of energy efficiency improvements. These include among others, zero flaring during normal operations, use of thermal efficient aero-derivative gas turbines for refrigerant compressors and generation, use of Dry Low NOx technology to reduce NOx emission and waste heat recovery systems for the process”.

The Coral Sul FLNG is 432 metres long and 66 metres wide, weights around 220,000 tons and has the capacity to accommodate up to 350 people in its eight-story Living Quarter module. The facility is located at a water-depth of around 2,000 metres and is kept in position by means of 20 mooring lines that totally weight 9,000 tons.

Coral Sul FLNG has a gas liquefaction capacity of 3.4Million tons per year (MTPA) and will put in production 16Trillion Cubic feet of gas from the giant Coral reservoir, located in the offshore Rovuma Basin.

Coral-Sul FLNG is the first floating LNG facility ever deployed in the deep waters of the African continent.

 


Egypt Signs a Gas Agreement With the EU

Egypt, Israel and the European Union (EU) have signed a Memorandum of Understanding (MoU) to increase LNG exports across the Mediterranean.

The signature took place Wednesday June 15, 2022.

The agreement calls for Israel to pump more gas via a pipeline to Egypt’s two LNG facilities before exporting it on tanker vessels across the Mediterranean to Europe. It wasn’t clear how much gas Egypt will be exporting to the continent.

Europe is pivoting away from Russian gas import, as that country shells Ukraine with massive artillery fire, in what Europe considers an unprovoked invasion.

EU Commission President Ursula von der Leyen and Israeli energy minister Karine Elharrar were in Cairo to seal the agreement.

“With this   agreement we will work on the stable delivery of natural gas to the EU from the East Med region”, tweeted von der Leyen after the signing ceremony. “This will contribute to our energy security. And we are building infrastructure fit for renewables – the energy of the future”.

The signing took place on the sidelines of a meeting of the East Mediterranean Gas Forum (EMGF), which brings together officials from the eight founding countries, as well as observers the EU, the US and the World Bank.

Egypt has had a singular, intentional focus on being the Mediterranean regional hub for energy supply and demand. The EMGF has been a key foreign policy initiative of Cairo — where the forum is headquartered — that would see us be the LNG export hub for the region’s gas reserves. Apart from Israel, Egypt has agreements with Cyprus and Greece on pipelines that would see their gas sent to our facilities for re-export

Two days before the EU/Egypt/Israel agreement, Gazprom, the Russian state-owned gas behemoth— which provides around 40% of Europe’s consumption — reduced supplies through the major Nord Stream 1 pipeline by 40%, blaming Siemens (the German engineering contractor) for malfunctions at its Baltic station. Russia had already cut off gas supplies to the Netherlands, Denmark, Poland and Bulgaria for failing to pay in Russian currency, The Rubble.

 

 

 


Senegal Moves Close to Gas Exporters Forum

Senegal, a would-be gas producer and exporter and the Gas Exporting Countries Forum (GECF), the global platform of the leading gas producing countries, have moved closer to discuss matters of common interest.

GECF Secretary General Mohamed Hamel held a meeting with Mouhamed Habibou Diallo, the Ambassador Extraordinary and Plenipotentiary of Senegal to the State of Qatar during a courtesy call to the Senegalese Embassy in Doha Qatar, on June 7, 2022.

“The discussion primarily centred on ramping up cooperation between the two sides, as Senegal gets ready to become an LNG exporter by the end of 2023”, GECF says in a statement.

The secretary general introduced the history, impact and function of the GECF, and explained the numerous benefits available to the GECF Member Countries.

“Recalling the fruitful participation of HE Aissatou Sophie Gladima, the Minister of Petroleum and Energy of Senegal, in the 22nd GECF Ministerial Meeting (2020) hosted by Algeria, he expressed the wish to have Senegal present at the 24th GECF Ministerial Meeting in Cairo (2022)”, the statement notes.

“The GECF official invited the esteemed diplomat to the Forum’s headquarters to witness first-hand the many projections and datasets available through the GECF Global Gas Model and to leverage those insights on the development of gas industry in Senegal”.

The ambassador “reaffirmed the interest in learning from the experience of the GECF and its Member Countries, many of whom have successfully developed their natural gas reserves for the benefit of their nations as well as for the advancement of the global energy landscape”, the statement concludes.

For further information, kindly contact:

Nadezhda M. Lyubovskaya

+974 3337 3641

nadezhda.lyubovskaya@gecf.org

Sarmad Qazi

+974 5546 8758

sarmad.qazi@gecf.org

About Gas Exporting Countries Forum:

The Gas Exporting Countries Forum (GECF) is an international intergovernmental organisation currently comprising of 19 Member Countries: Algeria, Bolivia, Egypt, Equatorial Guinea, Iran, Libya, Nigeria, Qatar, Russia, Trinidad and Tobago, and Venezuela as Member Countries, and Angola, Azerbaijan, Iraq, Malaysia, Mozambique, Norway, Peru, and United Arab Emirates as Observer Members. Together, the GECF Members represent 71% of the global proven gas reserves, 42% of marketed production, 53% of exports by pipeline and 55% as LNG.

The GECF is headquartered in Doha, Qatar.

www.gecf.org

Twitter.com/GECF_News

Linkedin.com/company/gecf-news/

 


Ghana Produces Less Than a Third of LPG Consumption

Locally produced Liquefied Petroleum Gas (LPG) was less than a third of the consumption in Ghana in the year 2021, according to the report of the Public Interest Accountability Committee (PIAC)

 Ghana National Gas Company (Ghana Gas) sold 90,327.56Metric Tonnes of Liquefied Petroleum Gas from January to December, 2021, a figure that was less than a third of total consumption of 300,000Metric Tonnes.

This means that there’s huge opportunity for local manufacture of LPG, in a country that consumes over 300Million standard cubic feet (300MMscf/d) of lean gas, mostly for power generation.

The local production of LPG, though, has increased year on year. The 2021 output was a 11.31% increase on the 81,152.48MT produced in 2020.

This piece was originally published in the March 2022 edition of the monthly Africa Oil+Gas Report

 


TAQA Arabia Delivers CNG Vehicles to Equatorial Guinea

TAQA Arabia, the Egyptian midstream hydrocarbon infrastructure provider, has delivered its first five compressed natural gas (CNG)-powered vehicles in Equatorial Guinea as part of an agreement signed between the firm and the Ministry of Mines and Hydrocarbons to collaborate on the development and expansion of the gas market in the central African country.

The agreement between the company and the country, penned in March 2022,  calls for rollout of midstream gas infrastructure in Equatorial Guinea, including the construction of the Punta Europe CNG project and CNG supply stations for vehicles across the country.

Equatorial Guinea is keen on optimizing the production and exploitation of its 1.5Trillion cubic feet of natural gas reserves to address domestic energy needs as part of the county’s Gas Mega Hub ambitions.

The country, in early May 2022, extended exploration and production contracts for Block G with Trident Energy, Kosmos Energy, Panoro Energy and GEPetrol.

Equatorial Guinea’s transport sector is heavily reliant on diesel and petrol imports, but with increasing investments across the entire gas value chain the country can exploit its gas resources to meet energy access and affordability issues as well as energy independence.

 


NUPRC: Nigeria on Course to Bolster Its Gas Reserves by 20 Percent

By Macson Obojemuinmoin

“Engaging with operators on the need to drill below the conventional oil window to target gas rich zones”

The Nigerian Upstream Petroleum Regulatory Commission says it is pulling out all the stops to increase the rate of natural gas utilization, expand the country’s gas market (both domestic and export) and thus encourage producers to commit to further exploration for gas.

“We are encouraging investors to leverage on the generous gas fiscal incentives in the Petroleum Industry Act (PIA) such as zero hydrocarbon tax, reduced royalty rates, tax consolidation provisions amongst others to take Final Investment Decisions on their proposed upstream projects”, says Gbenga Komolafe, the commission’s Chief Executive.

“Based on the provisions of the PIA, the Commission has issued the annual Domestic Gas Delivery Obligation (DGDO) to all lessees. This allows the Commission to drive gas production growth as operators are made to balance the export appetite with increasing domestic supply of gas”, Komolafe explains.

Nigeria produces about Eight (8)Billion standard cubic feet of gas 8Bscf/d, out of which about 20% is delivered to the domestic market, approximately 40% is exported to international markets, 30% is utilised for producer’s internal consumption and the excess gas is flared, the commission maintains.

“With a proven gas reserve base of 208.62Trillion Cubic Feet (Tcf) (as at 1st January 2022), we are on track to increase our reserves volumes to 220Tcf in less than 10 years and 250Tcf thereafter”, the CE declares in a report sheet of his six months in office.

One initiative that the Commission is implementing to improve finding success for gas, is “constant engagement with operators on the need to drill below the conventional oil window to target gas rich zones for production and increase the nation’s gas reserves”, the CE explains. Another initiative is to “steer operators with saturated reservoirs to ensure their well placements drive optimal exploitation of oil and gas resources”, Komolafe remarks.

A career public servant, Mr. Komolafe was appointed in September 2021, less than month after the PIA became the new, overarching petroleum law of the country.

He says the report of his six months stewardship is in accordance with the promise to be open. “We told Nigerians we will tell them everything”, he contends.

His report lists other initiatives that he says are being implemented by the Commission to increase gas production and utilisation:

Commencement of mandatory conduct of gas well deliverability tests for all gas producers to establish operating limits. This enables the Commission determine production potentials and guides the industry towards its maximum optimum capacity.

Revising the Flare Gas (Prevention of Waste and Pollution) Regulations 2018 and its associated Guidelines to incorporate methane emissions capture, to ensure the elimination of gas flaring/venting and monetisation of gas resources in the country.

Implementation of the provisions of the PIA 2021 on Gas Flare Elimination and Monetisation, as a means of unlocking more gas availability to the market. Companies are made to commit to a robust plan that eliminates gas flaring by bringing them to the market.

Accelerating the facility development and debottlenecking projects as a tool to incentivise gas production projects from the upstream sector to meet midstream and downstream demands.

Enforcement of approved associated gas development solution in all applicable oil development.

 


Alternatives to Russian Gas in Europe Materialize and Firm Up

By Rystad Energy

Russian gas exports to Europe have declined in the past month, with Norway increasing flows 17% in the past week and LNG imports at a 5-year hire.

Here is Rystad Energy’s regular gas and LNG note from senior analyst Nikoline Bromander:

European LNG imports are soaring, hitting a five-year monthly high in April as supply tightness in the continent continues, averaging 4.45 GWh/d, continuing the strong trend over the past months.

Russian gas exports to Europe have declined in the past month, with Norway increasing flows 17% in the past week and LNG imports at a 5-year hire.

Alternatives to Russian gas in the European market have started to materialize and firm up since Russia’s decision to halt flows to Bulgaria and Poland.

Poland is now cut off from Russian gas as of May 3, 2022, but a new pipeline to Lithuania, opened on May 1, 2022, will provide some supply relief.

Bulgaria too has been cut off by Russia, but announcement of a new floating LNG facility opening in 2023 in nearby Greece will keep them buoyant.

France, Spain, and the UK have accounted for most LNG imports in the past month.

The limited gas pipeline capacity in Europe has resulted in weaker price couplings between different regional benchmark prices.

The UK’s NBP spot benchmark is trading at a large discount to the TTF, priced at €46 at closing yesterday compared to €96 for the TTF spot.

Russian pipeline flows to Europe are stable May 4, 2022, ~250 MCMD, after Flows via the Yamal pipeline from Germany to Poland went to zero May 3, 2022.

Norway has ramped up its gas flows to Europe, currently at ~329 MCMD, up 17% week over week.

Nervousness in the market is driving gas prices (TTF) to EUR 106/MWh (~$35/MMBTU) on May 4, 2022, up nearly 7% day on day, following the new list of sanctions including a phase out from the EU announced earlier.

In addition to concern in the market over EU sanctions, there is also a upside risk related to threats from Russia terminating natural gas exports, as has already happened with Bulgaria and Poland.

If Russia shuts off supplies to more countries unwilling to pay in rubles then prices could skyrocket in the near term.

Most European countries will struggle to replace a sudden drop in supply.

Germany and Italy in particular are likely to suffer severe economic consequences given their heavy reliance on Russian gas imports.

Poland has currently ample natural gas storage, currently at 79%.

Poland has prepared well for this eventuality and has the capacity to ramp up liquefied natural gas (LNG) imports and will also benefit from the Poland-Lithuania Gas Connector (GIPL) that started operating on 1 May with a capacity of 2.4 Bcm/year.

Bulgaria, which was 100% reliant on Russian gas imports, will need to quickly take opportunities to diversify its gas imports.

The announcement, on May 3, 2022, that a new floating liquefied natural gas (FSRU) facility near the Greek port of Alexandroupolis, will start operations at the end of 2023, will be welcome news in Sofia.

Asian gas prices have been falling since the week of April 25, 2022,  due to lower demand and lockdowns.

Pricing in the region continues to trail the European market, while still competing with Europe for LNG deliveries.

 

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