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Anadarko Petroleum Corporation, Eni and their partners have signed a unitisation and unit operating agreement (UUOA) for the development of massive natural gas resources that straddle Anadarko-operated Area 1 and Eni’s Area 4. Under the terms of the UUOA and previously announced Decree Law, the Prosperidade and Mamba reservoirs will be developed in a separate but co-ordinated manner by the two operators until 24tcf of natural gas reserves, 12tcf from each area, have been developed. All subsequent development of the unit will be pursued jointly by the Area 1 and Area 4 concessionaires through a joint-venture operator (50:50 Anadarko and Eni).

Mozambique
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A joint venture agreement for the development of a 2,600km pipeline from northern Mozambique to Gauteng was signed in Maputo on 22 April by Empresa Nacional de Hidrocarbonetos, Profin Consulting, China Petroleum Pipeline Bureau, China Petroleum & Technology Development Corporation and Progas Investment Group.

Mozambique
Free

Sonangol on 12 April made declarations of commerciality for three gas discoveries: the Lira well on Block 15/14 in the Lower Congo Basin, and Katambi-1 on Block 24/11 and Lontra-1 in Block 20/15, both in the Kwanza Basin.A presidential decree in June 2014 granted Sonangol the mining rights to develop and produce hydrocarbon gases in the Block 15/14 Lira concession area. Sonangol said that, in accordance with the Block 15/06 production-sharing agreement, it would start talks with Block 15/06 operator Eni on options for exploiting, developing and monetising the natural gas resource.

Angola
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State giant Sonatrach and its international oil company (IOC) partners expect to produce more gas by end-2017 and in early 2018 as several projects that have been delayed for years in south-west Algeria finally come on stream. However, major questions persist over whether Algeria can continue to meet its export commitments during a period of fast-rising domestic consumption. Sonatrach managing director Abdelmoumen Ould Kaddour has talked about redirecting natural gas from reinjection to maintain crude output to domestic supply and export – a strategy given added impetus by Algeria’s support for Organisation of the Petroleum Exporting Countries production cuts.

Algeria
Issue 291 - 18 December 2014

Egypt: MoUs signed for gas power plant

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Italy’s Edison, part of EDF group, has signed two memoranda of understanding (MoUs) with investment holding company Qalaa Holdings – formerly Citadel Capital – and the Egyptian General Petroleum Corporation (EGPC) for the construction of a 180MW combined cycle gas turbine power plant in Abu Qir. The MoU with Qalaa covers the construction of the plant while the MoU with EGPC aims to secure part of the gas offtake from the Abu Qir concession in the offshore Nile Delta, which Edison has held since 2009.

Egypt
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The 1.3GW Ain Sokhna steam turbine plant was inaugurated on 6 May with Egyptian Prime Minister Ibrahim Mahlab and electricity minister Mohamed Shaker in attendance. The total cost of the project – including transmission connection and strengthening, technical assistance and contingencies – is around $2.2bn, comprising $831.3m from the Egyptian government, $600m from the World Bank, $550m from the African Development Bank and $208.5m from the Arab Fund for Economic and Social Development. The first 650MW from the plant began supplying the grid in December 2014.

Egypt
Issue 318 - 25 February 2016

Egypt lines up gas, coal, renewables IPPs

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The first independent power project (IPP) in Egypt since 1999 is likely to be a 250MW wind project in the Gulf of Suez which was awarded to France’s Engie (formerly GDF Suez) last year and will be formally signed in March. Next in line is likely to be the first 1,200MW phase of Benchmark Power International (BPI)’s combined-cycle gas turbine (CCGT) project in the Nile Delta, which is not far from financial close after securing backing from Abraaj Group with the support of the African Development Bank (AfDB, see Power).

Egypt
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An explosion at Naftal’s butane gas bottling plant in the Skikda industrial zone on 5 January hospitalised 17 people with burns, one of whom is understood to have died from his injuries. The incident appears to be a consequence of inadequate safety measures in the operation of the plant – said to be a widespread problem at Sonatrach’s downstream facilities. In a statement released through Algérie Presse Service, the official state-owned newswire, Naftal said that “the incident has no consequences for the effective supply of the wilaya and the eastern region, which is carrying on as normal”.

Algeria
Issue 399 - 13 September 2019

Benin: Maria Gléta start-up

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The 127MW Maria Gléta power plant near Cotonou was formally inaugurated on 30 August by energy minister Dona Jean-Claude Houssou. The plant comprises seven MAN 18V51/60DF gensets, which will mainly run on natural gas. The plant was built by a consortium including MAN Energy Solutions and Burmeister & Wain Scandinavian Contractor. It is planned to be expanded to a total capacity of 400MW in a future phase.

Benin
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The Maputo combined-cycle gas turbine power plant has begun partial operation, Mozambican newspaper Notícias reported on 27 March. Full operation using natural gas is expected to begin in August.Electricidade de Moçambique (EdM) official Narenda Gulabe told the newspaper that testing of gas injection into the system would continue until it reaches the power required for the plant to be fully operational.

Mozambique
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Private equity firms Actis and Amaya Capital are launching a new investment company with equity capital of $500m divided between them to develop up to 3GW of baseload gas and hydroelectric power in Africa. The deal confirms that Actis is re-emerging as a more proactive developer following the transfer last year of its equity in generation company Globeleq to development finance institution investors Norfund and CDC Group. In the first stage of the transaction, Amaya Actis has closed the purchase of American Capital Energy and Infrastructure (ACEI)’s 43.5% holding in Azura Power Holdings Ltd (APH).

Nigeria
Issue 292 - 15 January 2015

Morocco promotes LNG imports

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There have been several false dawns, with Moroccan governments promising a major new gas import scheme to provide energy security for two decades. But recent statements by energy minister Abdelkader Amara suggest Rabat is finally committing to LNG. Amara has said the long-awaited gas law will come before parliament by June (ahead of general elections in 2016), but before then the Islamist -led government plans to open talks on contracts to supply 3-5bcm/yr. Main competitors GDF Suez and Royal Dutch Shell have dedicated senior management teams to developing a Moroccan deal over several years.

Morocco
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Ophir Energy signed a memorandum of understanding (MoU) on 6 November with Excelerate Energy, GEPetrol and the Ministry of Mines, Industry and Energy for a planned floating liquefied natural gas (FLNG) project on Block R. Excelerate will be appointed as the lead in a consortium of floating liquefaction and storage technology providers expected to include Samsung Heavy Industries and Black & Veatch.It will be Africa’s first floating LNG project, and will gain a market advantage by coming on stream sooner than planned schemes in Tanzania and Mozambique

Equatorial Guinea
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Tanzania Petroleum Development Corporation (TPDC) has started issuing consultancy tenders for its planned liquefied natural gas (LNG) project, raising hopes that development could start to gain momentum to supply a more buoyant global LNG market.The government on 12 April invited expressions of interest (EoIs) from consultants to act as transaction adviser for the government negotiation team. The work would include developing a commercial, legal and technical framework for the LNG project, building capacity and supporting the government team, and devising the best approach for negotiating the host government agreement.

Tanzania
Issue 302 - 12 June 2015

Kulczyk sells out of Ophir

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Polish businessman Jan Kulczyk has sold his 8% stake in Ophir Energy as the company approaches the development stage on two big projects. Founding shareholder Kulczyk sold 56.6m shares on 28 April at 140p/share, well below the 250p price at which the stock launched in 2011. Ophir plans to develop 3.4tcf of gas on Equatorial Guinea Block R via a floating liquefied natural gas development, but says it will need to bring in a partner before a final investment decision.