https://www.engineeringnews.co.za

Potential gas-to-liquids string added to exciting Mozambique energy bow

Sasol CEO David Constable

Sasol CEO David Constable

Photo by Duane Daws

3rd July 2014

By: Terence Creamer

Creamer Media Editor

  

Font size: - +

A joint prefeasibility study into a large-scale gas-to-liquids (GTL) plant, based on gas from the Rovuma basin in Northern Mozambique, has been launched amid growing excitement about the energy potential that could flow as a result of large-scale gas discoveries in the country.

The study is being conducted by JSE-listed Sasol in conjunction with Mozambique’s national oil company, Empresa Nacional de Hidrocarbonetos and Italian energy group Eni.

Eni is the operator of the block called Area 4 in the deep waters of the Rovuma basin, which is estimated to hold up to 85-trillion cubic feet of gas. Sasol, meanwhile, already has significant gas investment in the Southern African country, but is also a GTL world leader, using a technology based on the Fischer–Tropsch process.

The prefeasibility will assess the viability and benefits of a GTL plant in the region, with Sasol having already deployed GTL technology in South Africa, Qatar and Nigeria.

The group is also advancing plans for a 96 000 bl/d GTL facility in Louisiana, in the US. That project, which would be developed in two phases, could involve an investment of between $11-billion to $14-billion. Sasol also has GTL interests in Canada and Uzbekistan, but it intends selling down its interest in Uzbekistan as that project matures.

The inclusion of GTL as an option for northern Mozambique adds a possible new gas “monetisation” dimension, with other energy groups focusing primarily on liquefied natural gas (LNG) export prospects.

For instance, Anadarko, of the US, which has discovered an estimated 45- to 70-trillion cubic feet of recoverable natural gas in the deep-water Rovuma basin’s Offshore Area 1, is currently in the process of finalising a LNG project. It intends shipping first cargoes by end of 2018 and the project would involve an investment of between $12- and $16-billion.

Sasol CEO David Constable has indicated previously that the group is keen to consolidate its position in the Mozambique gas sector, where it has already developed the Temane and Pande gasfields and the associated processing and transportation infrastructure over the past decade.

Together with partners, Sasol has invested $3-billion in southern Mozambique, including in the construction of a pipeline to Secunda. But Constable believes the discoveries in the north of Mozambique are large enough to support significant additional “gas monetisation” options over-and-above LNG.

The group claims to be particularly keen on a regional approach, whereby the gas extracted in Mozambique is used to meet both in-country energy needs and those in South Arica. Besides GTL and gas imports for use in Sasol facilities and by direct gas customers in South Africa, the group is investing in gas-fired power generation.

Sasol reports that it is already studying the potential for additional gas-to-power opportunities over-and-above the 140 MW project under development at Ressano Garcia – that project is likely to be inaugurated in August.

“The proposed GTL facility firmly aligns with Mozambique’s Gas Master Plan goals, and, if successful, will go some way to accelerate socioeconomic development in the country and the broader region,” Constable states.

Edited by Creamer Media Reporter

Comments

Showroom

Multotec
Multotec

Multotec, recognised industry leaders in metallurgy and process engineering help mining houses across the world process minerals more efficiently,...

VISIT SHOWROOM 
Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.081 0.142s - 172pq - 4rq
Subscribe Now