The Norwegian Ministry of Petroleum and Energy has approved ConocoPhillips’ development plan for the Tor 2 oil field offshore Norway.
The Tor 2 project, located in the North Sea in the Greater Ekofisk Area, is a redevelopment of the Tor field, which was on production from 1978 through 2015. ConocoPhillips submitted its development plan in July.
The project plan envisions a two-by-four slot Subsea Production System (SPS) with eight production wells.
The SPS is planned to be connected to the Ekofisk Complex by multiphase production and lift gas pipelines to existing risers at the Ekofisk 2/4 M wellhead platform. Controls and utilities are provided through a service umbilical from the same existing platform.
The new greenfield facilities will be located approximately one kilometer west of the original Tor platform with no connection to the shut-in facilities.
Seven production wells are planned to be drilled in the Tor formation. In addition, a pilot well is planned to test long-term productivity in the Ekofisk formation. The resource potential for the Tor II project is in the range of 60-70 million barrels of oil equivalent.
“It is great to see that old fields can revive. Tor has already been in business for 37 years. Now a new development plan has been approved and it is ready for a “Tor comeback” in 2020. Through active efforts by the oil companies and technological advances, Tor II will create new jobs and large revenues for the community,” Oil and Energy Minister Kjell-Børge Freiberg said.
The total investment in the development is estimated at NOK 6.1 billion (USD 662,5 million). ConocoPhillips has said that the development concept has robust economics and a cost of supply below $30.
ConocoPhillips operates the project with a 30,66 per cent stake, Total owns 48,2 per cent, Vår Energi 10,82 per cent, Equinor 6,64 per cent, and Petoro 3,69 per cent.
The West African nation, Côte d’Ivoire, is offering five oil blocks to companies that wants to venture into the country’s oil and gas sector.
The Chief of Staff at the Ministry of Petroleum, Energy and Renewable Energy, Jean Baptiste Aka announced this during the just ended Africa Oil Week in Cape Town, South Africa.
“Today I have the honour on behalf of the Minister of Petroleum, Energy and Renewable Energy to officially release a request for Expressions of Interest (EOI) in five blocks located on the eastern side of the sedimentary basin,” he said.
The three new blocks, CI-800, CI-801 and CI-802, along with existing blocks CI-102 and CI-503, benefit from shallow waters, good geological data and are adjacent to existing discoveries and the proximity of infrastructures.
Although the bulk of the nation’s prospects are in shallow water of less than 200 metres water depth, since 2011, 47 exploration licences have been granted by Côte d’Ivoire including four blocks in water depths exceeding 3000 metres.
The Côte d’Ivoire sedimentary basin is a passive transform margin that lies along the west coast of Africa, from Liberia to Ghana. Oil and gas activities began in the late Fifties with the discovery of bituminious sands in the South eastern coastal basin. By the end of last year almost 70,000km of 2D seismic along with over 92,000km2 of 3D seismic had been acquired with 280 wells drilled.
Several oil and gas deposits have been discovered including Espoir, Baobab, Foxtrot, Marlin, Manta, Mahi. Lion and Panthere, with most of them now in production. This year’s average production is estimated to be around 34,800 bopd for crude oil and 208 mmcf/d for natural gas.
“On the part of the ministry in charge of petroleum and energy side, we want to capitalise on our geographic position and the quality of infrastructures to become the energy hub of the West African subregion.”
Aka continued that: “It is our plan that this position will cover all the value chain of the oil and gas industry from upstream exploration and production to downstream activities including the development of oil and gas infrastructures.
“For the upstream sector, intense exploration activities have been conducted during the past nine years with many exploration licenses being granted, large seismic data acquired, and many exploration wells drilled.”
“Today, in the country there are four producing blocks with an output of around 38,000 bopd of crude oil and 213 MMSCFD of natural gas, mainly consumed locally in power plants and with growing demand,” he added.
Benefitting from a stable regulatory and fiscal regime
Ambroise Niamien, technical advisor for hydrocarbons, at Côte d’Ivoire’s hydrocarbon directorate explained that the process for interested parties is clear and transparent. “We picked those five blocks for obvious reasons and companies are invited to come in, look at the data and express an interest in those blocks,” he said.
“Based on the feedback we get in the terms of proposals that are submitted we will decide the next course of action.
“For now, we are not talking about bidding. Within a couple of months of the conclusion of the expression on interest process we will decide what route to take. It may be to hold some further discussions depending on the interest in any given block. The first stage is to collect the interest of any operator that may be interested in those blocks. Each operator will have one day’s access to the data free of charge and if they want to proceed, they must express their interest. But we want to be flexible. This is a new approach for Côte d’Ivoire, we do not want to tie our hands in a bidding process.”
Source:www.energynewsafrica.com
Ghana’s hydropower generation company, Volta River Authority, is calling for what it described as a competitive priced electricity tariff regime that incorporates financial compensation for its various ancillary services.
“We are of the considered opinion that the time has come for the mandated institutions to consider and incorporate the provision of ancillary services in the tariff methodology,” Mr. Kweku Andoh Awotwi who is the Board Chairman of VRA said at the Authority’s Annual General Meeting (AGM) on Tuesday.
According to Ghana News Agency, Mr Awotwi explained that the issue of non-cost reflective tariff and inadequate liquidity, continued to affect the Company’s finances, adding, “It is our expectation that the Government will address these critical issues through its ongoing initiatives.”
Mr Awotwi said a key priority of the West African nation hydropower generator, was to collaborate with Government and other interested stakeholders to develop and convert their simple cycle plants into combined cycle operations.
The target plants include the Kpong Thermal Power Station and the Tema Thermal One Power Plant.
It also aims to transfer ownership of the T3 Power Plant to VRA to enable it to re-tool it and operate it in a combined cycle mode with a private sector partner.
Mr Awotwi said generation from their hydro sources increased marginally from 5,034GWh in 2017 to 5,044GWh, contributing 37 per cent to the National power generation.
“Though we could not achieve our thermal plant availability targets, we successfully restored the second unit of the Takoradi Thermal plant (32G2)making available to the system over 100 MW of power which has been unavailable due to prolonged maintenance activity”.
The Authority’s decision to operate on natural gas led to a 30.5 per cent increase in the use of the resource, he said, pointing out that the completion of the Takoradi-Tema Interconnection project would enhance the thermal operations in the Tema enclave.
He said the VRA had a commitment to expand its portfolio of renewable energy projects and was in collaboration with the Ministry of Energy, the Ghana Atomic Energy Commission and the Nuclear Power Institute to support the development of Nuclear power in Ghana.
Chief Executive of the VRA, Ing. Emmanuel Antwi-Darkwa, said the Authority was on the path to financial sustainability and had since 2018 not received financial support from the Ministry of Finance.
“VRA is restructuring into a new era in 2021 and have put plans in place to ensure development in a sustainable manner, sustain our position as a market leader, improve operational and project implementation efficiencies, advance internal and external business processes and build, nurture and develop their human capital,” he said.
On his part, Chief Executive Officer at the State Interest in Governance Authority, (SIGA) Mr Stephen Asamoah-Boateng, commended the VRA, saying, they had provided a very hopeful financial outlook.
“We are looking beyond the PDS/ECG era,” he said, and pledged SIGA’s support to the VRA’s transformational efforts.
A team of the African Energy Chamber led by Executive Chairman NJ Ayuk have met with the Secretary General of the Organization of Petroleum Exporting Countries (OPEC) H.E. Mohammed Sanusi Barkindo in Abu Dhabi at the ongoing Abu Dhabi Petroleum Exhibition & Conference (ADIPEC).
A statement copied to energynewsafrica.com indicated that both parties discussed the sharing of best industry practices and technical cooperation with new and upcoming African oil producers.
Given the increasing number of African producers who have rejoined OPEC, and the strong support of non-OPEC African nations for the Declaration of Cooperation, both parties agreed on the opportunity to strengthen the technical dialogue between OPEC and Africa.
In order to cement OPEC’s engagement with new and upcoming producers, the Chamber will be assisting in the organization of an OPEC Technical Workshop in Dakar in early 2020, which will be open to regional technicians from ministries and national oil companies.
“As OPEC expands, it is important to open its technical meetings and workshops to non-member countries who could potentially join the Organization later,” Nj Ayuk, Executive Chairman at the African Energy Chamber and CEO of the Centurion Law Group said.
H.E. Mohammed Sanusi Barkindo welcomed the initiative as a very timely one, insisting that now is the right time for countries such as Senegal to engage with OPEC and the global oil industry.
“Such technical workshops can establish a framework for the long-term sharing of best industry practices for new African producers. They ultimately benefit the development of transparent and sustainable industries, this is good for Africa and Africans,” he stressed.
Shares in Tullow Oil plunged to a two-year low on Wednesday after the London-listed explorer warned that two significant discoveries in waters off Guyana contained heavy oil, prompting warnings that the projects would be difficult to commercialise.
The stock sank as much as 23% on the news that crude from two wells in the South American country was found to be heavy, with a high sulfur content. That’s disappointing to shareholders as the Guyanese discoveries earlier this year had countered concerns over troubled ventures elsewhere.
“We expect investors to worry about the projects’ value,” Al Stanton, an analyst at RBC Europe Ltd., said according to worldoil.com. Heavier oil is harder to produce and requires more energy to extract and transport.
Tullow struck oil twice off Guyana this year in a drilling campaign that’s been closely watched following earlier finds in the area by Exxon Mobil Corp. Tullow’s success there helped to offset concerns over its operations in Africa, where technical difficulties have hampered output in Ghana and projects in Uganda and Kenya have faced delays.
“The commerciality of both discoveries is still being assessed and our options are being reviewed,” Tullow spokesman George Cazenove said Wednesday. “The quality of the reservoir and the significant over-pressure are positive, and while oil of this type is sold in global markets, we need to do more work on the various parameters.”
Tullow also reduced its 2019 oil-output forecast on Wednesday, citing the problems in Ghana. It now expects to pump an average of about 87,000 bpd this year, down from previous guidance of as much as 93,000 bpd.
The stock traded down 22% at 161 pence as of 10:05 a.m. London time, making it the worst performer on the Stoxx Europe 600 Oil & Gas index. Eco Atlantic Oil & Gas Ltd., a partner in one of the Guyanese blocks, tumbled 50%.
“Tullow remains confident of the potential across the multiple prospects” in the country’s Orinduik and Kanuku blocks, the London-based company said in a statement. Results from the next well in the drilling campaign — Carapa — are expected by the end of the year.
The company forecast full-year capital spending at about $540 million, free cash flow at about $350 million and net debt at around $2.8 billion.
Power Africa and Africa50 have signed a Memorandum of Understanding (MOU) which aims to attract investments in the energy industry in sub-Saharan Africa.
The two will develop innovative public-private partnership models at the country and regional levels throughout the region.
“Energy generation and transmission are among the most pressing infrastructure needs in Africa, with important economic multiplier effects. To successfully develop energy sector projects requires collaboration among all stakeholders, so we are pleased to partner with the Power Africa initiative and look forward to working with its experienced member companies and organisations to implement power projects on the continent,” Koffi Klousseh, Africa50’s project development director said.
Richard Nelson, a deputy coordinator of Power Africa, added: “This new partnership underscores Power Africa’s commitment to partnering with African institutions. We are looking forward to deepening our collaboration with Africa50 to finance new energy and transmission projects in sub-Saharan Africa.”
Power Africa is a US government-led partnership, coordinated by USAID, that brings together the collective resources of over 170 public and private sector partners to double access to electricity in sub-Saharan Africa.
The goal is to add more than 30,000MW of cleaner, more efficient electricity generation capacity and 60 million new home and business connections by 2030.
As of July 2019, 56 of Power Africa’s 124 financially closed projects are producing 3,486MW.
Africa50 is an infrastructure investment platform that contributes to Africa’s growth by developing and investing in bankable projects, catalysing public sector capital, and mobilising private sector funding.
Africa50’s investor base is currently composed of 28 African countries, the African Development Bank, the Central Bank of West African States, and Bank Al-Maghrib, with over $876 million in committed capital.
Originally published on smart–energy.com
The Akufo-Addo administration is still committed to introducing private sector participation in the management of Ghana’s electricity distribution and retail company, Electricity Company of Ghana (ECG).
This, is according to the West African country’s Finance Minister, Mr. Ken Ofori-Atta.
Government last month terminated the concession agreement signed between ECG and Power Distribution Services (PDS) after several weeks of controversy, due to what government described as fundament and material breaches in PDS’s obligations in the provision of payment securities.
The decision compelled US government to withdraw an amount of $190 million which was meant to support the Ghana Power Compact II.
However, delivering the 2020 budget statement in Parliament on Wednesday, November 13, 2019, Mr. Ken Ofori-Atta said regardless of the developments in the sector, “Government is fully committed to [ensuring] private sector participation in ECG and is focused on moving forward with urgency to find a suitable replacement for the PDS arrangements.”
“Moreover, we are prepared to review the transaction structure and indeed, recognize the need to improve significantly the management of ECG, by bringing in world-class private sector expertise and attracting adequate private capital,” he added.
He further indicated that a competitive tendering process will be initiated very soon to find a replacement for PDS.
“Against this backdrop, Mr. Speaker, I am pleased to announce that Government intends to initiate an accelerated tender process to select a new private partner for ECG in the coming months. It is indeed Government’s intention to make relevant adjustments to enhance the existing bid documents and tailor the process to optimize the selection from companies having a track record of managing and operating a comparable utility, so as to achieve a fair, transparent and expeditious closure of the transaction”.
The Minister also added that concerning finding a new replacement for PDS, due diligence will be done to ensure that certain mistakes are not repeated.
“Mr. Speaker, we cannot overstate the importance of learning from past mistakes if we are to make sound decisions going forward. However, we have no doubt that a well-executed partnership between ECG and the “right” technical and financial partners, will certainly improve our distribution capabilities and enhance end-user experiences”.
“In this regard, heightened scrutiny will be brought to bear in the design and implementation of the financial and technical evaluation criteria to ensure that interested bidders not only have credibility and extensive experience in operating and managing a comparable electricity utility but also possess the financial wherewithal to make the requisite investments in ECG to achieve significant reductions in technical and commercial losses, as well as drive operational efficiency to deliver sustained service reliability for the benefit of all Ghanaians”
Ofori-Atta also maintained that despite the challenges encountered in the PDS concession agreement, Ghana remains committed to its relationship with the Millennium Challenge Corporation (MCC).
“Indeed, Government fully respects and is committed to the essential principles underlying the relationship between the MCC and the Government of Ghana, as well as the overall bilateral relationship between Ghana and the United States”
“Moreover, Government remains committed to the energy sector reforms, as envisioned under both the MCC Compact and the Energy Sector Recovery Program (ESRP), developed with the support of the World Bank”.
Source:www.energynewsafrica.com
Ghana’s strategic oil company, Bulk Oil Storage and Transportation Company Limited (BOST), has initiated strategic steps to expand its market share to make the company more efficient, and one of such moves is a proposed establishment of a depot at Takoradi to serve that enclave.
The West African nation’s strategic oil company has depots at Accra Plains, Kumasi, Buipe, Bolgatanga, Akosombo and Mami Water with total capacity of 425,600m3.
As part of BOST’s expansion drive, it has acquired a 185-acre land at Pumpini near Takoradi in the Western Region for the establishment of storage infrastructure.
“The Western Region storage facility will have spaces for 90,000 m3 gasoline, 60,000 m3 gasoil and 20,000mt LPG. The actual construction of the proposed facility is expected to commence in 2020. The completion of the facility will give the company enough visibility to serve the market and compete favourably in that part of the country,” Edwin A. Provencal, Managing Director of BOST, said in a story published by Business & Financial Times(B&FT).
He noted that actualization of the Western Region depot, coupled with other strategic plans such as enhancement of products’ transportation will help BOST capture about 50% of the market share in the medium term. Currently, BOST controls about 23% of the market; even though it has 35% storage capacity of national stock.
According to B&FT, Mr. Provencal who was speaking at a sensitization workshop for members of the Institute of Financial and Economic Journalists (IFEJ) held at Dodowa in the Greater Accra Region, said the move form part of efforts to turn the company around in order to make it a profitable enterprise in the petroleum supply chain.
He also stated that the company plans to rollout many infrastructure expansion to ensure operational efficiency, especially inter-depot connecting pipelines, such as a proposed pipeline between Akosombo and Kumasi. This, he said, will reduce the quantum of products transportation by Bulk Road Vehicles (BRVs) also known as road tankers.
“BRVs transportation is highly risky and also puts excessive pressure on the road.”
The BOST MD continued that the company was working assiduously to activate export trade with landlocked countries including Burkina Faso, Mali and Niger to generate more revenue.
“We have had levels of discussions with our business partners to supply them petroleum products through the Bolgatanga depot. There’s going to be construction of a 200km pipeline from Bolgatanga to Bingo in Burkina Faso to facilitate the export business”, he said.
Mr. Provencal however stated that for the above-mentioned strategies to come to fruition, much will depend on how quick BOST can raise substantial money to execute those projects, indicating that the company requires about US$150 million, of which US$64 million will be used to improve infrastructure such as storage facilities and pipelines.
The Nigerian National Petroleum Corporation (NNPC) has challenged shareholders of the Nigeria Liquefied Natural Gas (NLNG) to work very quickly towards expanding the production capacity of the company beyond Train 7 to take advantage of developments in the global LNG market.
The Group Managing Director of NNPC, Mallam Mele Kyari, gave the charge in Abuja, during the signing ceremony of a $2.5bn pre-payment agreement between NNPC and NLNG for Upstream gas development projects to supply gas to NLNG Trains 1 – 6.
Speaking on the significance of the agreement, the GMD said it would help to resolve the issues around gas supply to Trains 1 – 6, stressing that there was need to fast-track action on the process of bringing more trains on stream.
“Here at NNPC, we are thinking beyond Train 7; if your ambition is Train 7”, Kyari challenged the shareholders.
He noted that though NLNG has been a huge success as a company, it must go beyond its current achievements and initiate other viable projects capable of generating better return on investment.
“Actually, our thinking should be on what else we can do or what other projects we can work on as quickly as possible to take advantage of the enormous potential in-country. There is also the need for us to take advantage of what is happening in the global market and do things very differently. There are opportunities there and our company must move into those locations and we must move fast,” he declared.
The NNPC helmsman said the pre-payment gas supply agreement was a milestone which aligned with the Federal Government’s aspirations of monetizing the nation’s enormous gas resources, protecting the Federation’s investment in the NLNG, ensuring full capacity utilization (22mtpa LNG and 5mtpa NGLs) of Trains 1-6 plants, generating employment, and providing new vistas of growth opportunities in the nation’s LNG sector.
Earlier in his address, the Managing Director of NLNG, Engr. Tony Attah, noted that the signing of the gas supply pre-payment agreement was a significant step towards ensuring the company’s business sustainability and competitiveness.
He called for support to ensure that the Final Investment Decision on the Train 7 Project is taken this year without fail, adding that the project was no longer an ambitious one in the light of developments in the global LNG market.
Highpoint of the occasion was the signing of the gas supply pre-payment agreement which was witnessed by the Country Chairman of Shell Companies in Nigeria, Mr. Osagie Okunbor, and representatives of Total, Eni/NAOC, amongst others.
The Group Managing of the Nigeria’s National Petroleum Corporation, Mallam Mele Kyari, has given assurance that the selection of insurer for the NNPC’s assets in the 2020/2021 would be transparent, just as is the practice in other areas of the corporation’s operation nationwide.
He gave the assurance on Tuesday, November 12, 2019, at the NNPC Towers, Abuja, during the public bid opening exercise for companies that participated in the expression of interest as lead insurer for the corporation’s oil assets for 2020/2021.
“I am reassuring this country and the rest of our stakeholders that we are poised to make sure that this company acts and works transparently; we will remain accountable to our stakeholders. As a matter of duty for me and the management team, we will deliver on this”, Mallam Mele Kyari stated in a statement posted on the corporation’s website.
He advised the companies that participated in the bid to accept the results as only the best would emerge winner.
The Chief Financial Officer of the corporation, Mr. Umar Ajiya, said a key attribute of an organization like the NNPC was the protection of human assets, adding that the exercise was in pursuance of that objective.
He disclosed that a total of 42 companies submitted bids for the lead insurer contract, adding that each of the bids would be assessed on its own merit.
On hand to witness the bid opening process to ensure conformity with the public procurement law were representatives of the Bureau of Public Procurement (BPP), the Nigeria Extractive Industries Transparency Initiative (NEITI), National Insurance Commission, and civil society organisations.
Source:www.energynewsafrica.com
Ghana’s electricity distribution and retail company, Electricity Company of Ghana (ECG) has disconnected Sakumono Complex Two Primary School from the national grid due to poor electrical wiring of the school.
The school which was built some 25 years ago, is in dire of renovation, re-wiring and painting to make it befitting and convenient for teaching and learning.
The disconnection, the headmistress of the school, Madam Anne Rita Newton explained to energynewsafrica.com was done about three weeks ago thereby making visibility in the classrooms very poor.
Indeed, similar situations in other schools in the Sakumono Electoral Area have challenged Kwesi Poku Bosompem, Presiding Member of the Tema West Assembly, to lobby Africa Diamond Cable Company Limited for some retrofitting electrical lighting systems and cables.
Other schools the PM identified as having similar visibility challenges are Holy Child Nursery, Holy Child Primary and JHS and Sakumono Schools Complex ‘A’.
At a brief presentation to the schools at Holy Child Primary School, Kwesi Poku said he put in the request a fortnight ago and expressed his gratitude to African Diamond Cable Company Limited for supporting with the materials to solve the lighting problems in our schools.
The cost of the total equipment is GHc66,590 and to Kwesi Poku Bosompem, the gesture is so laudable and needs commendation.
“As a politician, my responsibility is to lobby for developments for my people and I’m glad my lobbying is yielding results,” he said.
On behalf of African Diamond Cable Company Limited and CEO, Victor Akowuah, Deputy Manager of the company said the company had done a similar gesture to Tema Technical Institute and looks forward to doing more of such corporate social responsibilities.
He said the company is determined to support education in Ghana, despite being in Ghana less than two years ago
“For us to do more of CSRs, we need Ghanaians to patronise our products which bare the name ‘Signal cable’ to increase our revenues for such gestures.
He said the company would donate a laptop to the best BECE candidate in the Sakumono Electoral Area in 2020, in addition to supplying some set of computers to the schools in the area.Source:www.energynewsafrica.com
The Executive Secretary for Ghana’s Public Utility and Regulatory Commission (PURC), Mami Dufie Ofori and CEO of hydro power generation company, Volta River Authority (VRA), Ing. Emmanuel Antwi-Darkwa, have been nominated for the 2019 Energy Personality of the year awards.
The ceremony, which comes off on Friday, November, 29, 2019, at the Labadi Beach Hotel in Accra, will be held under the theme: ‘Energy, the key to a sustainable economy for industrialisation’.
The duo were nominated alongside other distinguished energy personalities for the award.
Ing. Emmanuel Antwi-Darkwa, CEO of VRA
The VRA boss was, in addition, shortlisted for the best Energy Chief Executive Officer, CEO of the year.
Other personalities shortlisted for the award include Mr. Fred Oware, CEO of Bui Power Authority, Dr. Ben K.D Asante, CEO of Ghana National Gas Company, Mr. Gilbert K. Adarkwah, the advisor to Aker Energy CEO, Madam Salma Okonkwo of the UBI Group and Madam Efua Quansah, Country Director for PEG Ghana.
The Ghana Energy Awards has the objectives to, among other things, recognise the unique and tremendous efforts of distinguished personnel in Ghana’s energy sector.
The ceremony also affords the organisers the opportunity to bring industry stalwarts together on a single platform to network, share knowledge and tap on experiences and expertise of each other.
ADNOC LNG, a subsidiary of Abu Dhabi’s National Oil Company has announced that it has concluded supply agreements with subsidiaries of BP and TOTAL, effectively booking out the majority of its LNG production through Q1 2022.
The agreements were signed by officials from BP, TOTAL and ADNOG LNG – an Abu Dhabi National Oil Company (ADNOC) operating company.
According to Emirates News Agency, the signing of the agreements was witnessed by Dr. Sultan Ahmed Al Jaber, Minister of State and ADNOC Group CEO; Bob Dudley, Group CEO of BP; and Patrick Pouyanné, Chairman and CEO of Total.
“With these new supply agreements, ADNOC LNG has shown that it can react quickly and decisively to changing market conditions while ensuring the security and quality of delivery,’’ Fatema Al Nuaimi, ADNOC LNG CEO said.
“With the support of our shareholders, we have maximised access to new markets with strong LNG growth potential.”
She added, “We have also successfully demonstrated our ability to shift from one customer to multiple customers while maintaining our plant’s high reliability and accepting ships from different customers at our jetty. We continue to deliver on time, with the right specification, quality and agreed amounts.”
Today’s agreements are milestones in ADNOC LNG’s successful transition to a multi-customer marketing strategy that began just eight months ago in April 2019. Since then, ADNOC has shifted from supplying 90 percent of its LNG molecules to a single utility customer in Japan, which remains an important customer for ADNOC LNG, to supplying 90 percent of its LNG molecules to a range of clients and receiving terminals in more than eight countries across southern and southeast Asia including India, China, South Korea and Taiwan.
“BP is delighted to have concluded this LNG supply agreement,” said Robert Lawson, COO Gas, Integrated Supply and Trading of BP. “ADNOC LNG is a longstanding supplier to BP’s integrated supply and trading business. We are very pleased to have secured this new multi-year supply agreement.”
For his part, Laurent Chevalier, Vice President Middle East, Gas, Renewables & Power of Total, commented, “The 2 year LNG Supply Agreement contributes to the growth and flexibility of Total’s LNG portfolio and strengthens our longstanding relationship with ADNOC LNG.”
According to industry analysts, LNG is the fastest-growing hydrocarbon with a growth rate close to 4 percent per annum. Global LNG demand is expected to exceed 600 million tonnes per annum by 2035, up from nearly 300 million tonnes per annum in 2017.
ADNOC LNG produces about 6 million tonnes per annum of LNG from its facilities on Das Island off the coast of Abu Dhabi and is one of the world’s most reliable producers of the supercooled, liquefied gas.
ADNOC was the first LNG exporter in the Middle East and has been a reliable supplier of gas to global markets for over 40 years. Abu Dhabi’s strategic geographical location gives ADNOC advantaged access to growth markets in the Middle East and Asia, which are expected to drive significant gas demand in the near and long-term future.
ADNOC LNG is majority-owned by ADNOC, which has a 70 percent share of the company. Additional shareholders are Mitsui & Co (15 percent), BP (10 percent), and TOTAL (5 percent).
Source:www.energynewsafrica.com
