BP and its partners have given the green light for the development of a large gas project offshore Mauritania and Senegal, a first for the two West African nations.
The Greater Tortue Ahmeyim development, Africa’s deepest at 2 km below the sea’s surface, will consist of a complex floating vessel with a plant to super-chill natural gas into liquid, BP said in a statement.
This is the second major LNG project to get the go-ahead this year as energy companies bet on a sharp rise in gas demand, with Royal Dutch Shell also deciding to press on with the development of a plant in western Canada.
The Tortue floating LNG facility will produce 2.5 million tonnes of LNG per year. The field holds total gas resources estimated at around 15 trillion cubic feet.
Work on the project will begin in first-quarter 2019, and first gas is expected to be produced in 2022.
The Tortue go-ahead was given after the governments of Mauritania and Senegal reached an agreement over the sharing of production from the development.
BP is the project’s operator, with a 60% stake in the development in Senegal and 62% in Mauritania. Other partners include Kosmos Energy, with a 30% stake in Senegal and 28% in Mauritania.
Societe des Petroles du Senegal and Societe Mauritanienne Des Hydrocarbures et de Patrimoine Minier each hold a 10% stake on their side.
BP’s trading arm has been selected as the sole buyer of the project’s LNG.
Country plans to award up to $1.8 billion in contracts by September.
The independent U.S. energy producer aims to take a final investment decision on the $20 billion project in the coming months, having signed up long-term buyers for its LNG.
As part of the JV agreement, Hess Midstream and Targa will construct a new 200 MMscf/d gas processing plant called Little Missouri Four in McKenzie County, N.D., within the core of the Bakken.