US primed to spearhead Africa’s LNG and floating LNG expansion
Published by Jessica Casey,
Editor
LNG Industry,
As Africa looks to develop its gas for domestic and export markets, the US is honing in on LNG as a critical investment avenue, alongside traditional oil exploration. In October 2023, energy research and consultancy group Wood Mackenzie stated that Africa’s US$800-billion, 20-year upstream CAPEX programme would result in world-class LNG projects in Mozambique and floating LNG (FLNG) in five countries, presenting substantial gas-driven opportunities for US investors, operators, project developers and service providers.
Energy Capital & Power's upcoming Invest in African Energy (IAE) forum – taking place in Paris on 13 – 15 May – will showcase trade, partnership and investment opportunities available to US companies across Africa’s energy supply chain. The event brings together projects from all four corners of the continent to the global investment stage, with a view to establishing regional African gas markets and capitalising on rising US interest in African energy.
While American companies are already at the helm of the continent’s booming LNG industry, there is room to grow their participation, particularly in FLNG, which offers increased flexibility, reduced time to market and suitability for smaller gas volumes. According to energy intelligence provider Westwood Global Energy, the global FLNG market is set to see US$35 billion in new investment by 2027 – totalling 18.3 million tpy of additional capacity – with Africa dominating short-term investments. This increase in capacity will generate an associated EPC contract value of US$13 billion. After 2027, an additional 36.5 million toy of capacity is expected to come onstream, with an EPC value of US$22 billion. The projects and companies driving these capacity increases will be on display at the IAE forum, along with new projects in the pipeline.
In Equatorial Guinea, US operators and contractors are leading the country’s flagship Gas Mega Hub (GMH), which seeks to monetise all stranded gas fields in the Gulf of Guinea to facilitate an intra-African LNG trade. After achieving first gas from the project’s initial phase, Chevron’s Noble Energy E.G. signed a heads of agreement with Houston-based Marathon Oil and the government of Equatorial Guinea last March to develop phases two and three. The GMH could also pave the way for the construction of West Africa’s first LNG storage and regasification plant – the Akonikien LNG terminal – proposed in 2019 and to be built by American manufacturer Corban Energy Group.
With world-class LNG developments on the horizon – bp’s Greater Tortue Ahmeyim LNG in Senegal and Mauritania, Perenco’s Cap Lopez LNG Terminal in Gabon, Eni’s Congo LNG in the Republic of Congo, UTM Offshore’s first indigenous FLNG in Nigeria – the US needs to cement its market leadership in Africa’s on and offshore gas industry. Dubbed the fuel of the future, LNG is set to play a substantial role in the African – and global – energy mix for the foreseeable future.
Read the article online at: https://www.lngindustry.com/floating-lng/23022024/us-primed-to-spearhead-africas-lng-and-floating-lng-expansion/
You might also like
DET completes business structure for upcoming Wilhelmshaven 2 LNG terminal
The business structure for the future operation of Deutsche Energy Terminal GmbH's LNG terminal Wilhelmshaven 2, which is currently under construction, is complete.