Kenya and Tanzania sign deal to build Dar es Salaam -Mombasa LNG pipeline

KENYA – The governments of Kenya and Tanzania have signed a deal to build a liquefied natural gas (LNG) pipeline from Dar es Salaam to Mombasa that will be used for power generation and possibly for cooking as well as heating. President Uhuru Kenyatta and his Tanzanian counterpart Samia Suluhu announced at a press conference in Nairobi that the project would be part of a long-term plan to expand infrastructure between the two countries. President Suluhu said respective government officials had been instructed to commence works on the project immediately.…

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Tanzania to seal its US$30b LNG project in November 2021

TANZANIA – The government of Tanzania is looking to seal a US$30 billion liquefied natural gas (LNG) project within six months, after President Samia Suluhu called for a resumption of negotiations that had stalled for more than a year. One of the developers, Equinor ASA, took a US$982 million impairment on the project in January 2021, which it said would be reversible, after failing to settle terms with Tanzania’s government. Other project partners include Royal Dutch Shell Plc., Exxon Mobil Corp., Ophir Energy Ltd. and Pavilion Energy Pte. This will…

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Total confirms suspension of work on Mozambique LNG project

MOZAMBIQUE – French energy giant Total has confirmed it is suspending work on a massive US$20 billion gas project in northern Mozambique following the latest jihadist assault on a nearby town in March 2021. “Considering the evolution of the security situation, Total confirms the withdrawal of all Mozambique LNG project personnel from the Afungi site,” the company said in a statement. Total added that it was declaring a “force majeure” situation beyond its control, a legal concept meaning it can suspend fulfilling contractual obligations. A March 24, 2021, jihadist raid…

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Mozambique and Total agree on resumption of LNG work after security beef up

MOZAMBIQUE – The government of Mozambique and French oil and gas company Total, have announced that construction work will soon resume on natural gas liquefaction plants on the Afungi Peninsula, in the northern province of Cabo Delgado, thanks to additional security measures now being taken in that area. Work on the “Mozambique LNG” project, run by a consortium headed by Total, was interrupted at the end of December 2020, due to security threats in the immediate vicinity. The worst incident was a clash between the police and terrorist infiltrators on…

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ExxonMobil postpones final investment decision on Rovuma LNG project once again

MOZAMBIQUE – American multinational oil and gas corporation Exxon has postponed for the third consecutive year the Final Investment Decision on the natural gas exploration project in Mozambique, putting the US$30 billion investment in doubt. According to Bloomberg news agency, which quotes the company’s Senior Vice President Neil Chapman, during a conversation with analysts, there is no forecast on when the investment decision will be made on the natural gas plant in the Rovuma basin, as the oil company needs to secure power supplies from the neighbouring plant operated by…

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Energy company Equinor writes off US$922m Tanzania liquid natural gas project

TANZANIA – State-owned Equinor ASA of Norway is writing off its US$982 million liquefied natural gas project in Tanzania (TLNG), as overall economics have not improved sufficiently to justify keeping it on the balance sheet. This will be reflected in adjusted earnings for EPI division in fourth quarter 2020 results. “Equinor will continue to engage Tanzania in negotiations on commercial, fiscal and legal frameworks that may provide a viable business case for TLNG in future,” said the firm’s senior vice president for investor relations Peter Hutton. Equinor, formerly Statoil, has…

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Mozambique LNG Area 1 Project and AfDB win Multilateral Deal of the Year Award

MOZAMBIQUE – The Mozambique Liquefied Natural Gas (LNG) Area 1 Project and the African Development Bank (AfDB) have jointly received the prestigious Global Multilateral Deal of the Year 2020 award by the print and online publication Project Finance International (PFI). The project, the single largest foreign direct investment in Africa to date with a value of more than US$24 billion, will exploit Mozambique’s immense offshore natural gas reserves, which can potentially transform global energy markets. The AfDB signed an agreement for a US$400 million senior loan to finance the project in July 2020. In…

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Total to press on with Mozambique LNG project in spite of insurgency

MOZAMBIQUE – Total intends to continue its major gas project in Mozambique despite the armed insurgency that has plagued the country since 2017 as it trusts the authorities to ensure its safety, in return for a solid financial contribution. Armed insurgency has been targeting the central government in Maputo in the Cabo Delgado province, where most of the major gas discoveries have been made in recent years. The insurgency is led by al-Shabab, a group that pledged allegiance to the Islamic state in 2019 and who is increasing attacks in…

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Ghana to launch sub-Saharan Africa’s first liquefied natural gas-to-power project

GHANA – Ghana is set to open sub-Saharan Africa’s first liquefied natural gas-to-power project as it moves to position itself as a hub for the cleaner and cheaper fuel in the region. Tema LNG Terminal Co. received the floating regasification unit from Jiangnan, China, paving the way for the supply of 1.7 million tons of natural gas per year for power generation sometime this quarter, Edmund Agyeman-Duah, project manager at the company, said. The company, backed by Helios Investment Partners and Africa Infrastructure Investment Managers, began building the US$350 million…

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