BP, partners to ship second Tortue LNG cargo

ENB Pub Note: I have added a better description of the GTA LNG Export hub above:

1. Floating Liquefied Natural Gas (FLNG) Vessel (Gimi):
   • The Gimi, a converted LNG carrier owned by Golar LNG, is the world’s second converted FLNG vessel. It arrived at the GTA site in January 2024 after conversion at Keppel Shipyard in Singapore.
   • It uses Black & Veatch’s PRICO liquefaction process to produce up to 2.5 million tonnes per annum (Mtpa) of LNG in Phase 1, with potential expansion to 10 Mtpa in future phases.
   • The FLNG cools and liquefies gas for export to international markets, with BP Gas Marketing as the sole buyer for Phase 1 LNG offtake.
2. Quarters and Utilities (QU) Facility:
   • A jack-up platform that arrived in August 2022 from China’s CIMC Raffles Shipyard, accommodating 216 personnel.
   • It includes utilities like a power station, water treatment plant, and terminal control station, making it the “nerve centre” of the hub.
   • Its innovative hydraulic leg design allows rapid installation, reducing setup time compared to traditional platforms.
3. Floating Production, Storage, and Offloading (FPSO) Vessel:
   • A mid-water FPSO processes gas from the subsea wells, removing heavier hydrocarbons (condensate) and transferring processed gas to the FLNG via a 35 km export pipeline.
   • The FPSO, built under a contract with Technip Energies, handles up to 200 million metric standard cubic feet per day (Mmscfd) per well.
4. Subsea System:
   • Comprises four ultra-deepwater gas production wells, drilled to depths like 4,884 meters (e.g., GTA-1 appraisal well), connected via an 80 km subsea tieback to the FPSO.
   • Contracts for subsea infrastructure were awarded to McDermott and Baker Hughes for umbilicals, risers, flowlines, and production systems.
5. Breakwater:
   • A 1.2 km-long breakwater, completed in May 2022, protects the hub terminal. It consists of 21 concrete caissons on a foundation of two million tons of Mauritanian rock.

• Resource Base: The GTA field holds an estimated 15 trillion cubic feet of gas, making it a significant new basin for West Africa.
• Phase 1 Goals:
  • Produce 2.4–2.5 Mtpa of LNG for export, starting with the first cargo loaded in April 2025.
  • Supply gas for domestic energy markets in Mauritania and Senegal as infrastructure develops.
• Timeline:
  • Final Investment Decision (FID): December 2018.
  • First gas: Late 2024.
  • First LNG production: February 2025.
  • First LNG export: April 2025, marking BP’s third major upstream project start-up of 2025.
• Future Phases: Potential expansion to 10 Mtpa, with a second-phase development concept confirmed in February 2023.

• Economic Impact: The project is a “National Project of Strategic Importance” for Mauritania and Senegal, with a 50/50 resource and revenue-sharing agreement signed in 2018. It supports economic growth by providing export revenue and domestic gas for power generation.
• Global Energy Market: The GTA LNG Export Hub adds a new supply source to global LNG markets, diversifying supply chains. BP’s strategy includes 10 major upstream project start-ups by 2027, with GTA as a key component.
• Challenges:
  • Delays occurred due to technical issues with the FPSO, leading to a force majeure notice from BP to Golar LNG in 2020.
  • Contractor changes, such as McDermott exiting the project in 2023, required replacements like Allseas for pipelay work.
  • Commissioning of the FLNG took about six months, with commercial operations starting later than initially planned (originally Q3 2024).

• Environmental Concerns: LNG projects, even those with modern technology, contribute significant greenhouse gas emissions. The environmental impact of deepwater drilling and LNG production in a new basin raises questions about long-term sustainability, especially as global energy transitions prioritize renewables.
• Cost Overruns and Delays: The project’s history of delays (e.g., from 2022 to 2025 for first LNG) and contractor issues suggests potential mismanagement or underestimation of technical challenges, which could inflate the estimated $1.3 billion FLNG cost.
• Local Benefits vs. Export Focus: While some gas is allocated for domestic use, the primary focus on exports (with BP Gas Marketing taking all Phase 1 LNG) may prioritize global markets over local energy needs in Mauritania and Senegal, where energy access remains limited.

BP operates GTA with a 56 percent working interest alongside Kosmos Energy (27 percent), Petrosen (10 percent), and SMH (7 percent).

Kosmos said in its first-quarter report on Tuesday that the GTA project was lifting a second cargo following the first shipment last month.

The 2019-built 173,400-cbm, British Sponsor, which is on charter to BP, loaded the first shipment.

According to the AIS data provided by VesselsValue, the vessel was located in the Indian Ocean on Tuesday and headed to Singapore.

With the export of this shipment, Mauritania and Senegal joined the LNG-exporting nations club.

The first phase of the project features Golar LNG’s FLNG Gimi and the Tortue FPSO.

In February last year, the 2.7 mtpa FLNG, which was converted from a 1975-built Moss LNG carrier with a storage capacity of 125,000 cbm, arrived at the GTA hub.

After that, the project’s FPSO unit also arrived at the GTA project off the coasts of Mauritania and Senegal in May.

The partners previously signed a sales and purchase agreement under which BP Gas Marketing will offtake 2.45 million tonnes per annum of LNG from the first phase of the GTA project for an initial term of up to 20 years.

Kosmos said in the update that GTA production continues to ramp up.

Production in the first quarter averaged approximately 1,300 boepd net (7.8 mmcfd).

Kosmos said that all four FLNG trains are now operational and are being tested at about 10 percent above the nameplate capacity.

Additionally, the subsurface is performing ahead of expectations, with higher connected volumes potentially reducing the number of future wells required, according to he firm.

Near-term, the partnership is continuing to work to reduce operating costs on GTA phase 1,

eliminating duplicate costs related to the handover from commissioning to operations.

“We are also actively progressing the FPSO refinancing which is expected to be completed in the second half of the year. The operator is also investigating alternative operating models that could further materially reduce costs,” Kosmos said.

Kosmos also said that the partnership has started work on Phase 1+, a low-cost brownfield expansion of the development that is expected to double gas sales through increased LNG production and domestic gas.

“The expansion would leverage existing infrastructure put in place for the initial phase of GTA with low-cost upgrades to existing facilities that should drive materially lower unit costs and enhance overall project returns,” Kosmos said

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