Four Africa’s Current LNG Projects that Will Grow Your Business.

There are several big projects in progress or awaiting FID. These include Coral North FLNG, Rovuma LNG, Mozambique LNG, and Tanzania LNG in Southeast Africa. These projects will be instrumental in significantly increasing Africa’s LNG export capacity over the next decade.

1.Coral North FLNG
This proposed project would be a duplicate of the Coral South FLNG currently in operation. The north facility is expected to commence operations in 2027 and will be providing a capacity of 3.5 million tpy alongside the 3.5 million tpy already in place at Coral South.

 

2.Rovuma LNG
Rovuma LNG was initially going to be a two-train project with 7.6 million tpy capacity per train combining for 15.2 million tpy. However, the design was recently changed to use small modular units. It has become a 12-train project with 1.5 million tpy capacity per train but a higher total capacity of 18 million tpy. These smaller trains are becoming more popular for new LNG project proposals. It helps mitigate risk for stakeholders who do not have to commit to large projects from the beginning, but can instead commit to additions to the project as demand changes over time.

3.Mozambique LNG
This project was proposed to take advantage of the approximately 65 trillion ft3 of natural gas that was found of the northern coast of Mozambique in 2010. The project reached FID in 2019 but stalled due to concerns of security and stability within the area. However, TotalEnergies recently announced that they were in the process of re-starting construction. The project was originally going to be delivering its first cargo in 2024 and was going have the capacity to export 43 million tpy.

5.Tanzania LNG
While the three projects described above are all located within Mozambique, this last project is to be sited just north of Mozambique in Tanzania. The project was initially proposed in 2016 and would provide 10 million tpy worth of capacity, but negotiations have been slow. However, recently Equinor, Shell, and Exxon reached an agreement with the Tanzanian government on a regulatory framework and how the LNG produced at this facility will be shared. The Acting Director of Tanzania’s Petroleum Upstream Regulatory Authority, Charles Sangweni, stated: “We are happy it is a big step towards the implementation of the project although we have a lot to do. If everything goes well as planned, I am confident that the final investment decision will be reached in 2025.”

Hussein Boffu runs a consultancy provides business planning, financial forecasts, market research reports, expert analysis and consulting for entrepreneurs and business owners. Reach out to him via email at hussein.boffu@tanzaniapetroleum.com or by calling, texting, or WhatsApp at +255(0)655376543.