LNG

The Republic of the Congo and Italian energy major and liquefied natural gas projectdeveloper Eni have witnessed the sail away from Dubai in the United Arab Emirates of two vessels that will comprise the African nation’s first floating LNG production venture.

The two vessels left Dubai at a ceremony attended by Bruno Jean Richard Itoua, Minister of Hydrocarbons of the Republic of the Congo, Maixent Raoul Ominga, Managing Director of state energy company Societe National des Petroles du Congo (SNPC) and Guido Brusco, Chief Operating Officer for Natural Resources for FLNG developer Eni.

Eni said that the “Tango” FLNG vessel that formerly operated in Argentina is now on its way to the West Coast of Africa along with the “Excalibur” floating storage unit (FSU).

“The milestone aligns with the timeline of the Congo LNG project, whose first phase will start-up in December 2023,” said Eni.

FLNG surge

When Congo FLNG starts it will be the third project operating in Africa after Cameroon FLNG, Mozambique FLNG and with other ventures being developed in nations like Nigeria.

Two more FLNG facilities are being developed in joint projects for Senegal and Mauritania in West Africa and involving UK major BP and Dallas, Texas-based Kosmos Energy.

The “Tango” FLNG production hull has a liquefaction capacity of around 1 billion cubic metres per annum of gas.

It will be moored about three kilometres offshore along with the “Excalibur” FSU upon their arrival in Congo territorial waters.

“The Congo LNG project leverages Marine XII natural gas resources and existing production facilities in a new, phased approach that will be allowed to reach approximately 4.5 Bcm a year of gas liquefaction capacity at plateau, as well as zero routine gas flaring,” Eni explained.

The Milan-based company added that a second FLNG vessel with a capacity of about 3.5 Bcm of gas is under construction and will be deployed in 2025.

“The project will help the Republic of the Congo meet its energy needs while seizing the opportunity to exploit surplus gas through LNG production, allowing the country to join the group of global exporters of LNG in record time,” stated Eni.

“According to the agreements recently signed, all LNG produced will be marketed by Eni,” the company added. 

Italian government ministers have signed an accord with the Republic of Congo in West Africa to increase natural gas production and exports under a plan also involving future LNG shipments.

Italian Minister of Foreign Affairs, Luigi di Maio, and the European Union member’s Minister for Ecological Transition, Roberto Cingolani, signed the letter of intent with Congolese counterparts, including Congo's Minister of Hydrocarbons Bruno Jean Richard Itoua.

Also present was the Chief Executive of Italian energy company Eni, Claudio Descalzi, and after the signing the parties met in the capital Brazzaville with the President of the Republic of Congo Denis Sassou Nguesso.

“The agreement provides for the acceleration and increase of gas production in Congo, primarily through the development of an LNG project with start-up expected in 2023,” said a statement.

The floating LNG joint venture would have capacity of more than 3 million tonnes per annum of LNG once fully operational.

“LNG exports will allow the valorization of the production of natural gas that exceeds Congo’s internal market needs,” explained the statement.

The Republic of Congo and Eni have also agreed to define initiatives to promote decarbonisation, renewable energy and the development of an agricultural supply chain to produce feedstock for bio-refining without competing with the food chain.

“Currently Eni is the only company committed to developing the huge gas resources of the Republic of Congo,” said the Milan-based oil and gas company.

It currently supplies natural to the Congo Power Plant (CEC), which guarantees 70 percent of the country's electricity generation and Eni has been present in Congo for over 50 years.

At the start of March 2022, New Fortress Energy Inc., the New York-based supplier of LNG for power, signed an accord with a Eni’s Congo subsidiary for the deployment of LNG production equipment off the coast of the African nation for a period of 20 years.

NFE said it would set up its “Fast LNG” facility to produce LNG from the associated gas fields off the Congo.

The deal in the form of a preliminary Heads of Agreement provides a framework for negotiating a long-term tolling agreement between NFE and Eni.

NFE said that this would be for the full capacity of the facility and for the purchase by NFE of around 1.2 million gallons of LNG per day pursuant to a 20-year free-on-board (FOB) sales and purchase agreement.

The Republic of Congo’s associated gas comes from its oil production.

Wes Edens, Chairman and CEO of NFE, described the NFE-Eni deal at the time as a “landmark partnership” with the Italian company seen by Edens as the “perfect partner” for the “Fast LNG” unit

The NFE “Fast LNG” design pairs modular, midsize liquefaction technology with jack-up rigs or similar floating infrastructure to enable a much lower cost and faster deployment schedule than floating liquefaction vessels.

Under the NFE plan, a permanently moored floating storage unit (FSU) would serve as an LNG storage facility alongside the floating liquefaction infrastructure, which can be deployed anywhere where there is abundant and stranded natural gas.

African Energy Week 2021 is scheduled to take place in Cape Town from November 9-12 and will unite African Energy Ministers, oil and gas executives as well as national and international companies for four days of discussions and presentations.

The four-day event is taking place at the V&A Waterfront in the South African coastal city.

As the premier oil and gas event and the first sub-Saharan energy conference to take place on the continent in 2021, AEW 2021 is expected to provide the most suitable platform for a collaborative discussion on Africa’s energy future.

The theme of the Cape Town conference is “Making Energy Poverty History by 2030” and it will be hosted by South African Minister of Mineral Resources and Energy Gwede Mantashe, who will be one of the key speakers.

“AEW is a major exhibition and networking event of the African Energy Chamber (AEC) that seeks to unite African energy stakeholders and drive industry growth and development,” said the AEC.

“The event promotes Africa and its energy future with a four-day, high-level conference comprising networking sessions, innovative exhibitions, one-on-one private meetings and much more,” added the AEC.

Attendees

African ministers likely to attend AEW include those from leading LNG producers and countries with LNG projects, including Chief Timipre Sylva, Nigeria’s Minister of State for Petroleum, Diamantino Azevedo, Angola’s Minister of Mineral Resources and Petroleum, Gabriel Obiang Lima, Equatorial Guinea’s Minister of Mines and Hydrocarbons and Aissattu Sophie Gladima, the Minister of Petroleum and Energy for Senegal.

Other ministers in the line-up include Jaden Ali Obaid from Sudan, Alhaji Sesay of Sierra Leone, Ruth Nankabirwa from Uganda, Bruno Jean Richard Itoua, Minister of Hydrocarbons for the Republic of Congo, and Tom Alweendo, Minister of Mines and Energy for Namibia.

After attending AEW 2021 in Cape Town, the ministers will likely head for the Abu Dhabi National Oil Co. hosted ADIPEC forum in the United Arab Emirates, taking place from November 15-18.

ADIPEC will provide another platform for the discussion of Africa’s energy landscape, with a dedicated “Focus on Africa” session, led by African energy ministers and offering up key insight into Africa’s post-Covid-19 pandemic energy outlook.

“The UAE and Africa have a long history of successful relations across the entire energy sector value chain,” said Equatorial Guinea’s Gabriel Obiang.

“Through the Organization of Petroleum Exporting Countries, as well as with regard to the African energy transition, the UAE has emerged as a valuable partner for the continent, working closely with African countries to help develop both their economies and energy sectors,” stated the Minister.