The British Petroleum, BP and its partners Kosmos Energy, Petrosen and SMHPM have initiated Final Investment Decision, FID on the Phase One of the Tortue LNG project, Giles Farrer, director global gas and LNG, at Wood Mackenzie said, adding that the move at this time was economical and benefitting.
“By sanctioning the project now, BP is benefiting from the substantial cost deflation of recent years.
He added: “The real value for the project will come once BP and partner Kosmos move forwards with expanding the facility with Phases Two and Three in quick succession. These will deliver substantial upstream economies of scale and compelling value.
“Achieving FID in such a fast time-scale is a huge success. Prioritising a first phase, with limited initial capex, mitigates cost risk and delivers cash to shareholders and governments sooner.
“With estimated government take of around US$4.5 billion across all three phases to both Mauritania and Senegal, achieving FID is also a major milestone for both countries. And it bodes well for further hydrocarbon development in the region.”
Adding he said: “FID is another signal of how bullish the LNG market is. Tortue is the third LNG project to take FID this year and its sanction is the first phase in the establishment of a major new supply hub in the Atlantic basin.
“However, we believe 2019 could be the largest year ever in terms of LNG project capacity sanctioned. Over 60 million tonnes per annum is likely to enter construction next year, as companies race to meet a projected LNG supply gap in the early 2020s.”
The Tortue field is a 15-trillion cubic feet, tcf recoverable resources that straddles the maritime boundary of Mauritania and Senegal evenly discovered in April 2015, with BP farming-in in December 2016. It will be developed using a deepwater subsea complex, with an 80km tie-back to a shallow-water FPSO for gas processing and condensate storage and offloading. Gas will then be piped to the FLNG vessel, moored behind a breakwater. Phase One liquefaction will be provided, under a tolling agreement, by the 2.4 mmtpa Golar FLNG vessel Gimi.