Day: March 8, 2022

Mozambique: Floating LNG platform moored off Cabo Delgado

The floating platform that will be used in the production of Liquefied Natural Gas (LNG) from the Coral Sul gas field off the coast of the northern Mozambican province of Cabo Delgado is now in place and safely moored.

According to the contractor for the mooring and hooking up operation, Petrolis, the work was completed on 4 March following the tensioning of the twenty mooring lines.

In a statement released on Monday, the company noted that “our team has now successfully and safely completed the mooring activities” and added that pre-commissioning activities are planned to continue until June 2022.

The company revealed that to carry out the operation it deployed a crew of 44 people including engineers, managers, technicians, and other essential staff.

The platform reached Mozambican waters on 3 January after a lengthy voyage from South Korea, where it was built. It will now be connected to the production lines after which the process of testing all of the equipment and licensing the plant will be carried out.

Read: Coral-Sul FLNG ready to sail away to Mozambique’s Rovuma basin, in Area 4 first development

The Coral Sul project is owned by a consortium headed by the Italian energy company, ENI, and is due to begin operating in the second half of this year with a production capacity of 3.4 million metric tonnes of LNG per year, all of which has been secured by British Petroleum (BP) through a long term contract.

It lies within the Rovuma Basin Area Four concession and will be the first project to produce LNG in Mozambique. The main participant in Area Four is Mozambique Rovuma Ventures, a partnership between ENI, the US oil and gas giant ExxonMobil and the China National Petroleum Corporation (CNPC), which together control 70 per cent of the undertaking. The remaining 30 per cent is divided equally between the Mozambican state enterprise ENH, Galp Energia of Portugal, and Kogas of South Korea.

Source:Club of mozambique

Mozambique: Manica sets up gold processing plant

Construction of a gold processing plant valued at more than US$3 million (around 190 million meticais) in the town of Mariza. Machipoanda administrative post, in Manica district, is entering its final phase.

The facility, installed in the village of Nhamachato and with capacity to process 150 tons of hard rock daily, is 80% complete.

The plant, set up by a consortium of four companies, is in a testing phase that will end in May of this year, the plant’s mining manager told Radio Mozambique.

The consortium – made up of the mining companies KD Prospero, África Minerais, Clay & Gravel Mining, and Harvest Fame – owns several mines, both open-cast and underground, in the Machipanda administrative post.

When it reaches maximum production capacity, the gold processing plant will employ more than two hundred people.

Inspector General of the Ministry of Mineral Resources and Energy, Obede Matine, visited the plant and associated mine, and left some recommendations regarding the direction of developments.

Source:Club of mozambique

South Africa’s Gigajoule expects to import first LNG cargo at new Mozambique terminal by mid-2025

  • The Matola terminal could become South Africa’s first major LNG supplier.

South African energy company Gigajoule is confident of reaching financial closure by year-end ahead of construction of its $550 million Matola LNG import terminal in Mozambique with joint development partner TotalEnergies TTEF.PA, the chief executive of the privately-held firm said on Thursday.

The liquefied natural gas (LNG) terminal, which also has Mozambican shareholders, is expected to receive its first shipments of gas to a permanently moored floating storage and regasification unit in Matola harbour, close to Mozambique’s capital Maputo, by mid-2025, CEO Jurie Swart said on the sidelines of a gas conference in Cape Town.

The Matola terminal could become South Africa’s first major LNG supplier at a time government wants to significantly expand its domestic gas market but faces a gas supply crunch as onshore gas fields operated in Mozambique by Sasol start running dry within a few years.

Sasol’s Tande and Temane fields in southern Mozambique supply the bulk of South Africa’s gas needs via the 865 km Rompco pipeline. According to domestic industry body IGUA’s 2021 annual report, South Africa currently faces a gas supply shortfall of some 170 petajoules a year.

“Our realistic case is that construction for the LNG import facility will start in January next year and first gas is seen mid-2025,” chief executive Swart told Reuters.

He said Gigajoule, which is also co-developing a 2 000 megawatt gas-to-power plant close to Matola, intends to link the terminal to the Rompco pipeline to supply gas to South Africa.

“Financing is not that difficult … in the commercial market that we’ve canvassed for both these projects we think we’ve got full subscription from all the major commercial banks in South Africa and export credit agencies,” Swart said.

Matola is independent from Total’s $20 billion LNG development to the north of Mozambique that was disrupted by violence caused by insurgents linked to Islamic State, although the French oil major expects to restart the project this year.

Source:Club of mozambique

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