LNG

At the end of last year, it was reported that around 60 mill tonnes of QatarEnergy’s LNG supply was still unsold.

The first LNG was produced from Cheniere Energy’s first train of the Corpus Christi Stage 3 liquefaction project (CCL Stage 3) during the last week of 2024.

With plans currently underway to restart construction of the delayed $20 bill Mozambique LNG project, which has the potential to produce 13.1 mill tonnes of LNG for domestic use per year, there has never been a more important time to prioritise peace and stability in the country, the African Energy Chamber (AEC) said in a statement.

Following the country’s 2024 general election result, protests shook the country, leading to turmoil and instability.

Serving as the voice of the African energy sector and a strong advocate for the prosperity of Mozambique, the AEC said it fully supported the country’s government, and called for peace, stability and sustainable development, as Mozambique enters its new era of energy growth.

Since the discovery of significant natural gas deposits off Mozambique’s northern coast in 2010, expectations for the country’s economic prosperity skyrocketed. A previous IMF report forecast $500 bill in total revenue by 2045 and an average real GDP growth rate of 24% from LNG exports between 2021 and next year.

Integrated projects

Energy majors TotalEnergies, ExxonMobil and Eni are developing integrated LNG projects, while new upstream companies enter the market and gas-to-power developments approach completion.

Projects, such Coral Sul LNG, the Rovuma LNG facility and the Temane gas-to-power plant, have the potential to draw in billions of dollars in investment and revenue, while providing stable energy to upwards of 2 mill families by 2030.

Mozambique represents one of the most dynamic gas markets on the African continent, in which its vast offshore gas reserves could make it one of the top 10 producers globally and responsible for up to 20% of Africa’s production by 2040, the ACE said.

Geopolitically, these industrialisation efforts have the potential to benefit the wider southern African region and can transform the country into an energy hub for neighbouring countries, including Zimbabwe, Tanzania, Zambia, Malawi, Eswatini and South Africa.

In addition, a 2,700 km coastline on the Indian Ocean makes the country a gateway for vessel access, allowing Mozambique to specialise in efficient, global energy production while diversifying access to low-priced, high-quality goods from markets in Asia, India, Europe and America.

For Mozambique to realise its vast potential however, it is critical that the country remains firmly committed to political stability and sustainable development, the AEC added.

A peaceful and stable environment is the foundation upon which the international community can confidently build long-term partnerships, ensuring that the immense opportunities presented by the development of its natural resources and translate into tangible benefits for all.

“Peace and stability are essential for Mozambique to unlock its vast economic potential.

“As the country emerges as a global energy hub, the international community’s confidence hinges on a secure, unified nation. A commitment to peace will not only ensure the success of multi-billion-dollar energy projects but also secure long-term prosperity, driving sustainable growth for Mozambique and the entire southern African region.

“To do this, the government must find common ground and reach terms that translate to long-term beneficiation for the entire population of the country,” said AEC Executive Chairman, NJ Ayuk.

Mozambique stands at a crossroads; one path leads to further instability, while the other has the potential to transition the country into a trusted partner in the global energy community, the AEC stressed. 

US LNG producer, Venture Global, has filed for what could be one of the largest initial public offerings (IPO) globally this year.

bp has begun to flow gas from the Greater Tortue Ahmeyim (GTA) Phase 1 LNG project wells to an FPSO for the next stage of commissioning.

On 20th December, the European Commission (EC) gave permission for German subsidies worth €4.06 bill for the operation of four floating LNG import terminals by state-owned Deutsche Energy Terminal (DET).

The FSRUs were chartered in 2022 at what was deemed at the time to be a high charter rate paid to secure their employment.

The approved state aid "significantly contributes to ensuring continuity of gas supply to Germany and neighbouring countries following the end of Russian pipeline gas imports," said EC Vice President, Teresa Ribera.

This grant contributes to reducing the dependency on Russian fossil fuels and enables the diversification of energy supplies, she added.

The four FSRUs are a temporary solution until the construction of onshore LNG terminals is completed.

The subsidies will cover losses incurred as the terminals were chartered at the height of the EU energy crisis, as a result of Russia cutting fuel exports to the bloc in retaliation for its support of Ukraine.

DET agreed to sublet the floating terminals if the construction of the permanent replacements was completed before the charter contracts expire, the commission said.

On 23rd December, DET marketed new capacities for LNG regasification for one of its its two terminals at Wilhelmshaven and at Brunsbüttel.

DET has since reported that all the capacity volumes were sold and they were valid for January, February and March, 2025.

This was the first of two steps in the current marketing process. DET initially offered three slots per terminal for short-term capacities on the PRISMA platform.

In addition, it will also offer further capacity for 2025 and beyond to the international market via PRISMA in late January/early February. 2025, at a date yet to be confirmed. 

Golar LNG Limited has acquired Seatrium’s and Black & Veatch’s minority ownership interests in the FLNG ’Hilli’.

Vancouver (BC) LNG developer, Steelhead LNG, has filed legal proceedings against Cedar LNG, Pembina Pipeline Corp and ARC Resources in British Columbia regarding the Cedar LNG project.

Late last year, US officials strengthened their resolve to ensure LNG shipments to Europe meet current US methane regulations and also automatically comply with Europe's new standards for gas imports.

US engineering company, Baker Hughes has won an order from Bechtel Energy to supply gas equipment for two liquefaction plants with a total capacity of around 11 mill tonnes per annum for Phase 1 of Woodside’s Louisiana LNG development project, formerly Diftwood.

This order marks a significant milestone as Woodside targets final investment decision (FID) readiness from the first quarter of 2025, Baker Hughes said.

The contract includes the delivery of eight main refrigeration compressors driven by LM6000PF+ gas turbines and eight expander-compressors.

Baker Hughes had previously been chosen to supply Woodside with electric-powered integrated compressor line (ICL) packages and other turbo-machinery equipment for the associated pipeline to serve the LNG export terminal.

In addition, Chart Industries received the order from Bechtel to supply integrated pre-cooled single mixed refrigerant (IPSMR®) liquefaction technology and cold boxes for the Louisiana LNG project.

Under the the contract terms, Chart will provide two LNG plants comprising 16 cold boxes. Each LNG plant includes four heavies removal cold boxes and four LNG liquefaction cold boxes.