Full steam ahead for Tortue FLNG
Speaking after BP and partners Kosmos Energy, Petrosen and SMHPM announced FID Phase One of the Tortue LNG project, Giles Farrer, director global gas and LNG, at Wood Mackenzie, said: “By sanctioning the project now, BP is benefiting from the substantial cost deflation of recent years.
“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.”
Mr Farrer added: “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 project: The Tortue field (15 tcf recoverable resources) straddles the maritime boundary of Mauritania and Senegal evenly. It was discovered in April 2015, with BP farming-in in December 2016.
The field 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.