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Released January 06, 2025 | SUGAR LAND
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Written by Paul Wiseman for Industrial Info Resources (Sugar Land, Texas)--BP plc (NYSE:BP) (London, England) said last week that it had begun flowing gas from wells at its Greater Tortue Ahmeyim (GTA) Phase 1 liquefied natural gas (LNG) project offshore Mauritania and Senegal to its floating production storage and offloading (FPSO) vessel, in preparation for the project's next commissioning phase.
The project's second-largest participant, Kosmos Energy (NYSE:KOS) (Dallas, Texas), said in a press release that it expects first LNG production to follow shortly, "with the first LNG cargo expected in the first quarter of 2025, which is when we start to recognize revenue from the project."
Once fully commissioned, GTA is expected to produce as much as 2.5 million tonnes per year (MTPA) of LNG. At that time, the FPSO will remove the gas' heavier hydrocarbons and transfer the processed gas to a floating liquefied natural gas (FLNG) facility at a nearshore hub located on the two countries' adjoining maritime border.
Industrial Info has been tracking this project since 2017. After delays caused by the COVID-19 pandemic, drilling began in 2021. BP is the operator of GTA, with a 56% working interest, alongside Kosmos Energy (27%), PETROSEN (10%) and SMH (7%). The latter two are regional oil companies based respectively in Senegal and Mauritania.
GTA is one of the deepest offshore developments in Africa, with gas resources in water depths of up to 2,850 meters. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project and Plant databases can click here for the related project reports and here for the plant profiles.
In 2021, it was declared "a project of strategic national importance" by both host governments. The two west African countries are reportedly banking heavily on an LNG industry to "become an important LNG production hub" and thereby help invigorate the nations' struggling economies.
One African source said Mauritania could become Africa's third largest gas exporter, after Nigeria and Algeria.
Where Will the LNG Go?
GTA is expected to provide gas both for export and for domestic use by Mauritania and Senegal. BP's trading arm, BP Gas Marketing, will be the sole buyer of LNG from the project, with some of the exports likely bound for Europe, according to some sources.
However, Europe won't be the only potential destination for the LNG, said Jesus Davis, Industrial Info's Vice President of Energy Services. "This will be additional LNG in BP's portfolio, available for delivery globally. I think the primary focus will be Asia," he said. "There is more growth potential out of the Asian markets than European. Europe is mature and the 'growth potential' there lies in replacing existing gas supplies or displacing other fossil fuels. There will be minimal overall growth in gas usage as a whole. China and India still present huge opportunities for actual overall demand growth, as do other Asian countries."
As an example, Davis noted that BP's Pan American Energy is working to broker agreements to get Argentine gas to Asia by 2027.
Geoffrey S. Lakings, an IIR Energy senior analyst, agrees that China and India are the world's biggest growth markets, citing Rystad estimates showing the latter's natural gas demand doubling by 2040. He noted that Industrial Info has reported that India is expected to surpass China in 2025 as the world's leader in the growth of energy use. Sectors such as city gas distribution, fertilizer production (ammonia), and refining/petrochemicals are expected to lead the charge. For more information, see December 31, 2024, article - EIA: India Surpasses China as Top Nation in Oil Consumption Growth.
For China, Lakings pointed out that the nation's switch from diesel and gasoline to natural gas for delivery trucks has boosted its demand for LNG at the expense of oil imports. Even though China's energy usage as a whole is slowing its growth, LNG is still seen as a strong destination for exporters.
Too Late to the Party?
Still, there are cautions in Senegal and Mauritania as the International Energy Agency expects European natural gas demand to peak in 2025, and worldwide demand to peak by around 2030. A recent stoppage of Russian natural gas flow to Europe is not seen as being a significant boost for demand, as the nations affected already have other sources lined up. So some fear that large investments in gas production and LNG exports could fail to pay off, as some future developments are not expected to begin production until after 2030.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
The project's second-largest participant, Kosmos Energy (NYSE:KOS) (Dallas, Texas), said in a press release that it expects first LNG production to follow shortly, "with the first LNG cargo expected in the first quarter of 2025, which is when we start to recognize revenue from the project."
Once fully commissioned, GTA is expected to produce as much as 2.5 million tonnes per year (MTPA) of LNG. At that time, the FPSO will remove the gas' heavier hydrocarbons and transfer the processed gas to a floating liquefied natural gas (FLNG) facility at a nearshore hub located on the two countries' adjoining maritime border.
Industrial Info has been tracking this project since 2017. After delays caused by the COVID-19 pandemic, drilling began in 2021. BP is the operator of GTA, with a 56% working interest, alongside Kosmos Energy (27%), PETROSEN (10%) and SMH (7%). The latter two are regional oil companies based respectively in Senegal and Mauritania.
GTA is one of the deepest offshore developments in Africa, with gas resources in water depths of up to 2,850 meters. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Production Project and Plant databases can click here for the related project reports and here for the plant profiles.
In 2021, it was declared "a project of strategic national importance" by both host governments. The two west African countries are reportedly banking heavily on an LNG industry to "become an important LNG production hub" and thereby help invigorate the nations' struggling economies.
One African source said Mauritania could become Africa's third largest gas exporter, after Nigeria and Algeria.
Where Will the LNG Go?
GTA is expected to provide gas both for export and for domestic use by Mauritania and Senegal. BP's trading arm, BP Gas Marketing, will be the sole buyer of LNG from the project, with some of the exports likely bound for Europe, according to some sources.
However, Europe won't be the only potential destination for the LNG, said Jesus Davis, Industrial Info's Vice President of Energy Services. "This will be additional LNG in BP's portfolio, available for delivery globally. I think the primary focus will be Asia," he said. "There is more growth potential out of the Asian markets than European. Europe is mature and the 'growth potential' there lies in replacing existing gas supplies or displacing other fossil fuels. There will be minimal overall growth in gas usage as a whole. China and India still present huge opportunities for actual overall demand growth, as do other Asian countries."
As an example, Davis noted that BP's Pan American Energy is working to broker agreements to get Argentine gas to Asia by 2027.
Geoffrey S. Lakings, an IIR Energy senior analyst, agrees that China and India are the world's biggest growth markets, citing Rystad estimates showing the latter's natural gas demand doubling by 2040. He noted that Industrial Info has reported that India is expected to surpass China in 2025 as the world's leader in the growth of energy use. Sectors such as city gas distribution, fertilizer production (ammonia), and refining/petrochemicals are expected to lead the charge. For more information, see December 31, 2024, article - EIA: India Surpasses China as Top Nation in Oil Consumption Growth.
For China, Lakings pointed out that the nation's switch from diesel and gasoline to natural gas for delivery trucks has boosted its demand for LNG at the expense of oil imports. Even though China's energy usage as a whole is slowing its growth, LNG is still seen as a strong destination for exporters.
Too Late to the Party?
Still, there are cautions in Senegal and Mauritania as the International Energy Agency expects European natural gas demand to peak in 2025, and worldwide demand to peak by around 2030. A recent stoppage of Russian natural gas flow to Europe is not seen as being a significant boost for demand, as the nations affected already have other sources lined up. So some fear that large investments in gas production and LNG exports could fail to pay off, as some future developments are not expected to begin production until after 2030.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
