domingo, 27 de abril de 2014

Italy's Eni invites design proposals for Mozambique LNG plant

Italy's Eni invites design proposals for Mozambique LNG plant

MILAN, April 16 Wed Apr 16, 2014 6:17pm EDT

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(Reuters) - Italian energy major Eni has invited interested companies to put forward design proposals for a floating liquefied natural gas (LNG) plant in Mozambique.
A source close to the matter said Eni announced its request for so-called front-end engineering and design (FEED) proposals in a local Mozambique newspaper.
Eni is looking to export recent finds in the East African country thought to contain gas resources of more than 85 trillion cubic feet (Tcf) to energy-hungry Asia.
Some of the world's biggest offshore natural gas fields lie off the coast of Mozambique.
Eni holds a controlling stake in the gas-rich Area 4 field in Mozambique's Rovuma Basin, which is estimated to hold more than 150 tcf.
The state-controlled Italian major has previously said its investments in the country could total around $50 billion.
As part of its project it plans to build onshore and offshore gas liquefaction plants aimed at mainly Asian markets and local consumption.
In a strategy update earlier this year, Eni said it plans to build an onshore LNG plant and two floating LNG plants in its giant Mamba field with a combined capacity of 10 million tonnes per annum (mtpa).
A final investment decision (FID) is expected before the end of 2015, with productionstart-up due in 2020.
Eni is also planning another floating LNG plant in its fully-owned Coral field in Area 4. A decision on that is expected by the end of the year.
The challenge for one of Africa's poorest countries is to develop the fields and begin lucrative exports before a wave of supply from rivals, including neighbouring Tanzania, beat them to market.
In Mozambique, exploration efforts are being spearheaded by Italy's Eni and U.S.-based Anadarko Petroleum.
(Reporting by Oleg Vukmanovic and Stephen Jewkes; editing by Andrew Hay)
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Eni mulls Mozambique LNG plant

Eni mulls Mozambique LNG plant


LNG plans: Mozambique Prime Minister Alberto Vaquina (left) meets Eni chief executive Paolo Scaroni



Italian major Eni is giving serious consideration to building a liquefied natural gas plant in northern Mozambique as it looks to monetise huge gas discoveries offshore.

Eni close to hiring adviser to sell Mozambique gas stake

UPDATE 1-Eni close to hiring adviser to sell Mozambique gas stake - sources

Thu Mar 27, 2014 12:38pm EDT
* Sale of 15 pct stake could raise up to $5 bln - sources
* Interest from players in Asia - sources
* Eni CEO has already spoken of selling down stake further (Adds source comments, background)
By Sophie Sassard and Stephen Jewkes
LONDON/MILAN, March 27 (Reuters) - Eni is close to mandating a bank to sell a stake of up to 15 percent in its giant gas field in Mozambique which could raise as much as $5 billion for the Italian oil and gas major, banking sources said.
Eni sold 20 percent of its Mozambique offshore gas acreage to Chinese oil companyCNPC last year in a deal worth around $4.2 billion.
The Italian state-controlled major still has a 50 percent stake in its biggest ever gas discovery - known as Area 4 - and Chief Executive Paolo Scaroni has previously talked about selling down further.
"Eni has mandated a bank to sell a 15 percent stake in its Mozambique gas field in a possible $5 billion deal. A lot of players, especially from Asia, are expected to show up," one of the sources said.
Another source said top Chinese offshore oil and gas producer CNOOC Ltd was high up on the list of potential buyers because it was keen to build up a liquefied natural gas (LNG)business.
Sources have previously told Reuters other oil majors such as ExxonMobil, Chevron, Shell and Total could be interested in Eni's block. But a deal with these larger companies might threaten Eni's control of a project that is crucial to its future.
A sector expert also said that it had become more difficult for oil and gas majors to justify large upstream investments with their investment committees because the focus is on improving the performance of existing assets rather than expanding capacity.
Eni declined to comment.
Eni's acreage in Mozambique is thought to contain resources of more than 85 trillion cubicfeet (tcf) of gas. It is part of the wider Rovuma basin that holds more than 150 tcf, enough to supply Germany, Britain, France and Italy for 15 years.
Cash from the sale could help fund investments by Eni in the area estimated at around $50 billion.
"A 15 percent stake would be worth around the same, pre-tax, as the 20 percent stake sold to the Chinese last year," a third banking source said.
Some analysts told Reuters last year the Chinese offer for the 20 percent stake had been below their value estimates.
In February Scaroni said Eni could reduce its stake in Area 4 to 35 percent. "We are looking for a potential partner who is also a buyer of gas, possibly in the region," he said.
Scaroni's third mandate at the helm of Eni expires in around a month's time and some government and industry sources say he might not be reappointed as the new government of Matteo Renzi seeks fresh faces to head state-controlled groups.

(Reporting by Sophie Sassard and Stephen Jewkes; Editing by Pravin Char)

sábado, 26 de abril de 2014

Mozambique Gas Summit – Strategic Conference & Exhibition, 2-5 December 2014

Mozambique Gas Summit – Strategic Conference & Exhibition, 2-5 December 2014



Mozambique Gas Summit will once again be the pivotal meeting place for leading Mozambican oil & gas decision makers to engage with international, regional and local investors and showcase the abundant opportunities available in the country.
Organised in partnership with ENH, with full endorsement from the Ministry of Mineral Resources, and support from the Ministry of Energy , CMHINP and PetromocMozambique Gas Summit is a must attend forum for all stakeholders in Mozambique’s energy industry.
Mozambique Gas Summit 2014 will feature strategic Conferenceinteractive SeminarsLocal Content Day and international ExhibitionClick here to secure your involvement early!
CWC Group hosted its first Mozambique Gas Summit on 12-14 March 2013 in Maputo. The gathering has been the largest energy event in Mozambique so far and brought together 


The summit heard from:
  • H.E. Aiuba Cuerenei, Minister of Planning & Development, Mozambique
  • H.E. Salvador Namburete, Minister of EnergyMozambique
  • H.E. Dr Abdul Razak Noormahomed, Vice Minister of Mineral ResourcesMozambique
  • H.E. Agostinho Abacar Trinta, Governor of Inhambane Province
  • Dr Tavares MartinhoExploration Director, ENH
  • Steve HoyleVice President LNG Marketing, Anadarko / Mozambique LNG
  • Ebbie Haan, Managing Director, Sasol Petroleum International
  • Manuel Ferreira De OliveiraVice Chairman of the Board & CEO, Galp Energia
  • Steve RatcliffeSenior Vice President LNG, Eni
Key decision makers from ENH, INP, CMH, Petromoc, senior executives representing East African Governments and National Oil Companies, major IOCs, independents, banks and service companies delivered major announcements, essential industry updates and information.
Just some of the participating companies representing the value chain in the region included:


viernes, 18 de abril de 2014

Tanzania is installing a 542-km gas pipeline from Mnazi Bay and Songo Songo to Dar es Salaam

Tanzania is installing a 542-km gas pipeline from Mnazi Bay and Songo Songo to Dar es Salaam (Fig. 4). The pipeline, with a 36-in. OD trunk and 24 in. spur, will transport 784 MMcfd to Kinyerezi 1 power plant. China National Pipeline Bureau is building the line and expects it to enter service in December. As of November 2013 more than 140 km of the trunkline had been laid, with the balance of pipe lay expected to be completed in July.
Tanzania naturl gas pipeline
National Oil Co. Kenya and Indian Oil Corp. are building a 14-in. OD, 352-km products pipeline from an interconnect with an existing line in Eldoret, Kenya, to Kampala, Uganda, and eventually to Rwanda. The countries expect the project to be complete by 2017, with bid evaluation for the Eldoret-Kampala leg underway in October 2013.

miércoles, 16 de abril de 2014

Mozambique coal - Railway connections

Mozambique coal - Railway connections

As the mining industry demands more from the country’s infrastructure, the government must find new ways to expand its limited capacity.

It’s no secret that the rail and port infrastructure in Mozambique is unable to cope with the current demands of the population, let alone the mining companies. Industry leaders recently stated that it would take a total investment of $20 billion to revive and rejuvenate the country’s railways and port infrastructure. 

WHICH WAY?
One of the main strains on the current infrastructure is the fact that Mozambique is trying to export huge quantities of coal on a signal railway, the Sena Line. It is the only link between the remote coalfields of Tete and the ports on the east coast. Therefore, if something happens along the way, all exports stop, as happened in February 2013 when a section of the line was flooded, and Brazil’s Vale had to invoke the force majeure clause in its contract for two weeks as shipments shut down. The Sena line is under serious strain from the coal companies and the population of the country, and was only able to move 3 million tons of coal in 2012, less than half of what was projected. In 2009, the British-Australian company Rio Tinto and other mining companies were actively seeking to use the Zambezi River to transport coal for two reasons: first, it is almost 300 kilometers shorter by river than it is by rail, and second that it is almost an exclusive form of transport for the coal industry, unlike the railways. 

One of the major problems for Mozambique is that the lack of rail infrastructure in the first place, it cannot allow for an exclusive rail link for the coal industry, as there is no alternative for the population. In the end, the government would not allow the Zambezi River to become a transport link for the coal industry because of the environmental impact it could have on the surrounding area.
THE VISION
The government has a 2020 vision of exporting 120 million tons of coal. To do this, it needs to improve its links, and the most cost-effective way for the government  to do this would be via private investment, which has already begun. In February 2013, Mozambique Ports and Railways (CFM) signed an agreement with Vale to upgrade the Nacala Corridor, which would reach from the border of Malawi all the way to a new coal terminal at Nacala-a-Velha. The project would also consist of upgrading a line in Malawi from the border with Mozambique to Nkaya. As well as this, Vale will also construct a new line from Nkaya to Mozambique’s western border, where it will connect with Moatize coalfield line. The whole project is expected to cost around $4.4 billion. The government has also launched a tender for a $3 billion project in Tete. There were 21 bidders in the beginning, but as of April 2013 there were six remaining, with Rio Tinto the frontrunner. The tender is for a 525-kilometer rail link from Tete to Macuse in Zambézia Province, as well as building a new port with a capacity of 25 million tons of coal per year. The port will also be built with the potential to double capacity if the need arises. The government hopes that this tender will be completed in the next few years and the Minister of Transport and Communications, Paulo Francisco Zucula, hopes that this will increase the total export capacity to 30 million tons per year. However, since the mining companies are not allowed an exclusive line, it will also need to accommodate passenger trains for the local population.
The Port of Beira in the north, close to Tete, and the ports of Maputo and Matola in the south are the main exports hubs of Mozambique at the moment. The southern ports have a current export capacity of 15 million tons of coal per year. The ports are owned by Grindrod and Maputo Port Development Company (MPDC), while MPDC is a joint venture between the Mozambique Railway Company, Grindrod, and DP World. The ports are the most southern in Mozambique and are in need of upgrading, as demand is extremely high. The Matola Port is more specialized in coal and bulk transport, while Maputo generally handles cargo and other exports. Grindrod and MPDC have pledged to invest $1.7 billion over the next five years to meet the growing demand. The investment plans to increase the capacity up to 50 million tons per year by 2020. The first installment of $355 million has been approved for 2013 and 2014 and will increase Matola Port’s capacity to 7.2 million tons by 2014. 

THE WAITING GAME
Mozambique’s underdeveloped infrastructure may help the country in the short term. The coking coal market is oversupplied at the moment and prices are low due to lower demand from steel mills because of production issues in China. Mozambique’s coal is of a high quality, and mining companies are hoping by the time the new capacities start to come online, prices will have moved back up to the highs of 2011 and market supply will have tightened back up again.
Investments are coming into Mozambique, but companies remain skeptical as to whether infrastructure can meet export targets. Either way, infrastructure all over the country is getting a much-needed revamp and capacity will increase over the next few years.