Liquefied Natural Gas (LNG)

Saipem’s Scarabeo 5 drilling rig to be converted into new floating unit for Congo LNG

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This article first appeared on the Hawilti+ terminal on 10 August 2023.

Saipem has been awarded a contract by Eni Congo to convert its Scarabeo 5 semisubmersible drilling unit into a separation and boosting plant.

The converted rig will serve a floating production unit (FPU) for Congo LNG, Eni’s LNG export project currently under-development offshore Pointe Noire. Saipem is already a contractor on the project, for which it is executing preliminary engineering and procurement activities.

The FPU will be receiving the production fluids from wellheads riser platforms, separate the gas from liquids and boosts the gas to feed the nearby 2.4 mtpa floating LNG unit (FLNG) currently being built by Wison Heavy Industry in China.

While start-up is expected in Q4 2025, Eni Congo is expected to start delivering LNG as early as the end of the year from an initial development that relies on a small 0.6 mtpa FLNG unit.

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Golar LNG in discussion for four floating LNG projects in Nigeria

This article first appeared on the Hawilti+ terminal on 12 August 2023. Golar LNG has signed a Heads of Terms with Nigeria’s state-owned NNPC Ltd in August 2023 and is currently discussing and developing four floating LNG and gas projects in the country, the company said. It targets to use its 2.4 mtpa Hilli FLNG unit, currently contracted offshore Cameroon until 2026, or its 3.5 mtpa MKII FLNG unit for deployment offshore Nigeria for a minimum of ten years. The MKII wil rely on an LNG carrier recently acquired and set for conversion. Nigeria has been increasing its outreach to global stakeholders and investors across the gas value-chain as it seeks to monetise its 206 Tcf of gas for the domestic and export market. Several gas export projects are currently planned, including pipeline and LNG export infrastructure. The most advanced of them is the UTM Offshore floating LNG unit, in which NNPC has taken a 20% stake and currently progressing toward a final investment decision (FID).

Nigeria’s pioneer CNG player taps debt capital markets for expansion

This article first appeared on the Hawilti+ terminal on 19 July 2023. Nigerian natural gas supply company Green Liquified Natural Gas Limited (GLNG) has secured its first debt funding as it looks to boost its operations in Africa’s biggest economy. The company sold NGN5 billion ($6.5m) of 10-year series bonds due 2033 under its NGN50 billion ($65m) Debt Issuance Programme. Nigerian financial guarantor InfraCredit provided guarantee for the facility.   The bond proceeds will enable GLNG to develop its Liquified Natural Gas plant and expand its CNG distribution and power-as-a-service capabilities, according to an official statement, noting the bond issue was oversubscribed by 108% by ten institutional investors. “This maiden bond transaction is an important milestone for GLNG, as it provides the leverage to finance our ambitious plan to establish a state-of-the-art LNG plant in Nigeria,” Chairman of GLNG, Olajide Rosiji, said in the statement. “More importantly, the success of this transaction reinforces our steadfast commitment to contribute to Nigeria’s clean energy and transportation landscape and foster sustainable economic growth in the region. GLNG already operates two gas compression and distribution facilities in Ogun State with combined capacity of approximately 10.5 MMscf/d, making it the largest in Nigeria. The company currently delivers an average of 4.2 MMscm of CNG per month to industrial and Autogas customers in southwest Nigeria where access to piped gas infrastructure has been lacking. Nigeria, Africa’s biggest oil producer, holds some of the world’s biggest gas reserves. But while the country’s gas has benefited industrialization and power generation overseas through LNG exports, its domestic utilization remains limited. Boosting local consumption is now at the centre of the government’s agenda as it promotes gas as a transition and cleaner fuel.