Wison New Energies has been appointed to lead the design validation and preliminary front-end engineering and design (Pre-FEED) for two 3MTPA floating liquefied natural gas (FLNG) units in Nigeria.
The agreement covers the design validation and engineering studies for the design of a 3MPTA facility to support the ‘design one and build two strategies’ to be applied across Ace Gas and FLNG Company’s and Transoceanic Gas and Power’s projects in offshore Escravos and offshore Pennington respectively.
Wison New Energies has been entrusted with the FLNG design and EPC. According to the China-based engineering company, the contract has already been signed, and mobilization funds have been disbursed for this phase of the project.
The FLNG will produce, store and offload 3MPTA LNG and associated LPG and condensates for transport to market.
“Wison is excited to see the project has been officially entering into the pre-FEED stage. We’re confident that our FLNG EPCIC experience will guarantee a successful and efficient delivery. We are excited about advancing to the next stage in the near future,” added Fan Jian, Nigeria’s country manager for Wison New Energies.
“Ace Gas and FLNG, through this project, is committing to enhancing the energy landscape of the country and empowering local communities through direct and indirect job opportunities. The commencement of the Pre-FEED further reaffirms that commitment,” said Christopher Nwokolo, Ace Gas and FLNG’s CEO.
Escravos and Pennington FLNG Projects
Strategically located offshore in Escravos, Ace Gas and FLNG’s project is designed to supply 3 MTPA of LNG to the international market, 150,000 metric tons per year (MT/yr) of LPG to the domestic market, 25,000 barrels of oil per day (bopd) of condensates, and 75,000 MT/yr of propane.
In addition to providing much-needed liquidity to the country from the sales of LNG, the FLNG project is also expected to create over 1000 direct jobs and an additional 3000 indirect jobs, contributing significantly to the local economy and workforce development.
The upstream gathering facilities for the project will be managed by Samsung Heavy Industry Nigeria, while Siemens Energy will provide the power and compression systems. Ace Gas and FLNG said it has offtake assurances for the LNG from Socar, Vitol, and Karpowership of Turkey.
The project is backed by private equity, and the financing for the upstream development will be provided by Quantum Suisse.
Transoceanic Gas and Power’s FLNG Project also aims to develop over 3MTPA of LNG. The feedstock for the project will be sourced from multiple fields located in the swamp and shallow water regions close to OPL 289 and other proximal gas-rich assets.
The NPV for this project is expected to exceed $1 billion, and it benchmarks excellently with other similar projects in Africa. We have developed an integrated model that ensures sufficient gas feedstock for Phase 1 and Phase 2 of the project, as well as a possible expansion. The model could help derisk upstream gas resourcing, with guarantee from Transoceanic Gas and Power of at least 7 TCF of gas supply.
The midstream products expected from the project include LNG, LPG, and condensates. The LNG will be marketed through medium to long-term contracts, targeting critical gas shortages in Europe and potentially replacing Russian gas.
“We will supply 50MMSCFd of treated gas to Phase 1 of the floating power barge. The condensates will be sold based on fixed-term and spot market oil markets, and exports will go through the most proximal terminal.
"We will assess opportunities for a direct contract with a refinery. LPG will be distributed locally, and excess LPG will be distributed across West Africa to provide direct import substitution and reduce the cost of domestic cooking gas,” Transoceanic Gas and Power said.