Monday, May 17African Business News
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Tag: LNG

Mozambique’s ambitious northern gas plans head south

Mozambique’s ambitious northern gas plans head south

Oil & Gas
Natural gas was supposed to help industrialise the northern provinces, but after a string of project cancellations it will be transported to the more prosperous south What is the best way to remove the Rovuma Basin’s gas from the far—some would say forgotten—north of Mozambique to the capital and economic centre of the country in the far south? That was the only big question considered on Tuesday by Mozambique’s Council of Ministers, which decides whether it should be sent by road, sea or pipeline. Once upon a time, Mozambique had a Gas Master Plan. It was to use gas to industrialise, in particular, the gas-rich north via the allocations that Mozambique secured in various agreements. But now—with Cabo Delgado, the gas-rich province, aflame with an Islamist-inspired insurgency—those pla...
Nigeria’s gas-to-power agenda may hedge LNG negative sentiments

Nigeria’s gas-to-power agenda may hedge LNG negative sentiments

Energy
With glut in the Liquefied Natural Gas (LNG) sector, a new report from the Oxford Institute for Energy Studies (OIES), has stated that the margin for exporting the product remains negative, and could remain so for the duration of 2020. As calls for local consumption of gas intensifies, especially for gas-to-power, Nigeria may take advantage of the low prices to increase supply for power generation. According to the report, the LNG glut is hurting both buyers and sellers. This means that an average U.S. LNG cargo would not cover its short-run marginal cash costs delivering to Europe or Asia at current prices,” OIES said. Meanwhile, analysis of S&P Global Platts Analytics data has shown that exports of LNG from West Africa’s four producers have revealed some resilience, desp...
Why oil market uncertainties, COVID-19 will stall projects

Why oil market uncertainties, COVID-19 will stall projects

Oil & Gas
The outbreak of coronavirus and glut in the oil sector will drastically affect the nation’s oil industry, especially projected which are expected to take place this year, the Chairman, International Energy Services (IES) Ltd., Diran Fawibe has said. Indeed, while the newly sanctioned train seven of the Nigerian LNG is expected to commence with construction work towards third quarter of 2020, Fawibe noted that the current financial crisis in the sector and across the world could delay the project. Speaking with The Guardian on the implications of the current development, Fawibe stated that the industry has been impeded both locally and internationally. Already, the Director/CEO of the Department of Petroleum Resources, Sarki Auwalu, stated that conducting bid rounds for marginal f...
Petroleum sector risks $210 billion cost cuts

Petroleum sector risks $210 billion cost cuts

Oil & Gas
The upstream sector of the oil and gas industry could be hit harder in the current dilemma facing the industry as deeper cuts hovering around $210 billion is being considered in the sector. A global resources consultancy, Wood Mackenzie in a latest report noted that almost all pre-FID projects would be deferred, adding that of the 50+ projects identified with potential to go ahead this year, only 10 have a chance of proceeding, though all are at risk. Wood Mackenzie’s upstream research team, Rob Morris, disclosed that about $110 billion of investment would be deferred across the world, with another $100 billion at risk. “New committed investment could be as low as US$22 billion if only the most advantaged projects progress,” he stated. Morris disclosed that corporate balan...