BP postpones major investment in liquefied natural gas sector
BP has postponed the start of its FLNG project off the coast of Mauritania and Senegal, the company said in its earnings report on Tuesday. FLNG stands for Floating Natural Gas Liquefaction Plant.
“ Phase 1 of Greater Tortue Ahmeyim (GTA) is now expected to start in Q1 2024 ,” bp said. Kosmos Energy is a non-operating partner in the project which BP says could transform Mauritania and Senegal into global LNG players within 30 years " creating prosperity and development at local and national levels ".
The Tortue field, according to estimates by bp and Kosmos, could contain 440 billion cubic meters of potential recoverable gas resource. GTA Phase 1 is the first step towards making the basin a world-class gas province and a major LNG hub, bp says on its website. The postponement is likely due to a mix of technical issues and uninspiring natural gas prices.
GTA, distributed in block C-8, was originally discovered in 2015, with an investment decision announced in December 2018.
Kosmos considers the project one of the cheapest greenfield projects in the world, with the first phase providing approximately 2.5 mmtpa of natural gas. It is also one of the deepest undersea developments in Africa.
Mauritania and Senegal have classified the project as a National Project of Strategic Importance due to the project's potential to secure domestic energy and energy revenues for the countries.
Phase 1 of the FLNG project comprises an ultra-deepwater subsea system with four gas production wells, a mediumwater FPSO vessel and a FLNG facility.
The project was originally scheduled to reach first gas in 2022, but has experienced numerous delays, including Covid-related delays, extending that date to 2023 and now 2024. Some contractors working on the project have even alleged late payments for the completed work. Phase 2 of the project was announced in February this year and is expected to produce up to 3mmtpa.
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The article BP postpones major investment in the liquefied natural gas sector comes from Scenari Economici .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/bp-rinvia-importante-investimento-nel-settore-del-gas-naturale-liquefatto/ on Wed, 02 Aug 2023 15:34:30 +0000.