2021 Gas FIDs
The Future of African Gas: 10 FIDs to Look Out For in 2021
With most African nations turning to gas to secure energy for their populations and support industrialization, 2021 could see several key projects moving forward. We have selected 10 important ones to look out for. For full information on each project and to track their advancement throughout 2021, go on the Hawilti App or www.hawilti.com and follow our channel “Gas 4 Africa”.
Tendrara Gas Project - Morocco
Located northeast of Morocco next to the border with Algeria, the Tendrara Gas Project has the potential to both feed the gas-deficient domestic Moroccan market or further export gas to Europe via the Gazoduc Maghreb Europe (GME) gas export pipeline. The project is expected to be developed in two phases, starting with a micro-LNG plant for the TE-5 Horst development whose commissioning is planned for 2021. It will then be followed by a phase 2 full field development plan centered around the development of a 120km pipeline and central processing facility (CPF) connected to the Gazoduc Maghreb Europe (GME) pipeline. Operated by Sound Energy, the development is part of the Greater Tendrara Petroleum Agreement, which covers an area of approximately 14,500km2 extending across eastern Morocco and covering the Tendrara gas discovery.
In order to launch the full field development, Sound Energy is still in negotiations to sign the final Gas Sales Agreement and is exploring various funding options. One of them was a substantial divestment of its interest in the concession, reducing its share to 23.3%. While the sale generated tremendous interest, it has still not reached a final agreement with a purchaser. With more stable market conditions in 2021, the project could make significant steps forwards.
Rovuma LNG Export Terminal - Mozambique
If and when approved, the 15.2 million tonnes per annum (mtpa) Rovuma LNG export terminal will be Mozambique's third LNG project after Eni's 3.4 mtpa Coral South floating LNG and Total's 12.88 mtpa Mozambique LNG terminals. While final investment decision (FID) was expected in 2020, the Covid-19 pandemic coupled with unattractive gas market conditions jeopardised the project’s timeline. However, Rovuma is still slowly but surely moving ahead following the resubmission of cheaper EPC bids in 2020 making the project more attractive from a cost perspective.
The terminal is expected to monetize 12 trillion cubic feet (Tcf) of gas found in offshore Area 4 and is supported by several international oil companies. Under current plans, ExxonMobil is the operator for the construction and operation of the onshore LNG trains and related facilities, while Eni will be leading all upstream gas operations as operator.
Maria Gléta Gas-to-Power Plant - Benin
Along with the inauguration of the 127 MW Maria Gléta power station in 2019, Benin revealed plans to develop an LNG-to-power complex on site with a capacity of up to 400 MW. This vision is steadily coming to reality with 2020 seeing the issuance of the pre-qualification notice and call for bids for a second 143 MW dual-fuel thermal plant at Maria Gléta. With the winner expected to be announced in 2021, we can also anticipate plans for the LNG floating, storage and regasification unit (FSRU) to move forward.
The installation of an FSRU has already been approved with the specific goal of supplying gas to the Maria Gléta complex. It notably led to the issuance of a competitive tender by the government and the selection of Total Gas & Power Business Services in 2019 to develop the project and start importing gas in 2021.
Matola LNG Import Project - Mozambique
In order to meet increasing gas demand in Mozambique and support the construction of a greenfield 2,000 MW gas-to-power plant, French major Total, clean energy developer Gigajoule Group and Mozambican gas distribution company Matola Gas are planning the installation of a floating, storage and regasification unit (FSRU) in Maputo. The project aims at importing LNG into Maputo for distribution to the planned Beluluane gas-to-power plant, and to support the development of a new gas hub in the region. The FSRU installation, the power plant construction and the laying out of the necessary gas pipeline between both are expected to require about $2.8bn. The final investment decision (FID) for the project is expected at the earliest in Q4 2021.
Beluluane Gas-to-Power Plant - Mozambique
Mozambique is planning its largest ever gas-to-power plant in the Beluluane Industrial Park area: a 2,000 MW facility built in phases. The project is part of a much broader scheme supported by French major Total, clean energy developer Gigajoule Group and Mozambican gas distribution company Matola Gas. Together, the partners have secured approvals to install a floating, storage and regasification unit (FSRU) in the Matola port in Maputo and lay a gas pipeline to the Beluluane Industrial Park, feeding LNG into the new power plant. The final investment decision (FID) is expected at the earliest in Q4 2021, and the first phase of 500 MW commissioned in 2022. It follows government approvals in 2019 along with the signing of a Joint Development Agreement between Total and Gigajoule for the LNG import project the same year.
Lesedi CBM-to-Power Project - Botswana
Tlou Energy has been working on developing Botswana's coal-bed methane (CBM) reserves to generate electricity since its incorporation in 2009. The company is focusing on the development of three major project areas in Botswana: Lesedi, Mamba and Boomslang. Lesedi is the most advanced of these projects and notably benefits from the only independently certified CBM gas reserves in Botswana, with 252 billion cubic feet (Bcf) of 3P gas reserves certified and approximately 3 trillion cubic feet (Tcf) of 3C contingent gas resources. The project is being developed in two phases. Phase one involves the construction of a 100km transmission line from Lesedi to Serowe, which will act as the backbone for any monetisation of electricity produced from CBM at Lesedi. At a cost of $10m, it also involves the installation of transformers and generators, and the establishment of a grid connection. Initial electricity generation in phase one is proposed to be up to 2 MW. It will then be followed by phase two, at a cost of about $20m, targeting expansion from 2 MW to 10 MW and involving drilling of additional gas wells and the purchase of additional electricity generators. As of 2020, Tlou Energy was still in discussions to secure the funding for both phases and could potentially close financing in 2021.
Northern Gas Complex (Quiluma/ Maboqueiro) - Angola
International Oil Companies (IOCs) operating in Angola are developing the country’s first upstream natural gas project in order to secure sustainable supplies to the Angola LNG export terminal, which has so far processed only associated gas. In 2019, Eni (operator, 25.6%), Chevron (31%), Sonangol (18.8%), Total (11.8%) and BP (11.8%) formed a new joint-venture known as the New Gas Consortium in order to explore and develop gas from several blocks in Angola.
The Quiluma and Maboqueiro fields (Block 1) are the first development that the joint-venture is targeting and are expecting FID in 2021. The $2bn project will notably include a pipeline and a new fixed wellhead platform for each field and mark the start of a whole new journey for Angola’s gas industry.
Central Térmica de Temane (CTT) - Mozambique
Now led by Globeleq, the Temane gas-to-power plant aims at supplying low-cost and reliable electricity to EDM through a 25-year tolling agreement using natural gas supplied from the domestic Pande-Temane fields, operated by Sasol and ENH. The power plant falls within the Temane Regional Electricity Project (TREP), a priority project of the Government of Mozambique that involves the construction of a 400kV high voltage transmission line from Vilanculos to Maputo, along with three new substations at Vilanculos, Chibuto and Matalane, and upgrades to the Maputo substation. The total investment for the power plant, the transmission infrastructure and the upstream gas development is expected to come close to $2bn.
CTT has already secured substantial funding approvals and is expected to achieve financial close by Q2 2021 with most debt funding coming from the U.S. International Development Finance Corporation, the International Finance Corporation and the OPEC Fund for International Development (OFID).
Bekoko Gas-to-Power Plant - Cameroon
Already present in Ghana and Madagascar, Turkish power developer Aksa Enerji entered Cameroon in 2019 with intentions to develop a new 150 MW gas-to-power plant in Bekoko, on a brownfield site located on the ouskirts of Douala. The project is developed under a Memorandum of Understanding signed with the Ministry of Water Resources and Energy of Cameroon (MINEE) and would monetise domestic gas produced around Douala by Victoria Oil & Gas' subsidiary Gaz du Cameroun.
As of 2020, the negotiations towards a proper Gas Supply Agreement (GSA) between Aksa Enerji Uretim A.S. and Gaz du Cameroun were progressing positively. In parallel, Aksa is also progressing its in-country applications and agreements for the Bekoko power plant where a high voltage substation has already been built.