Specialist energy consultant Wood Mackenzie has highlighted the boost that Floating Liquefied Natural Gas (FLNG) is gaining in 2024, with projects both in Mozambique and in the region contributing to increased LNG production. According to Wood Mackenzie, the Coral South FLNG project in Mozambique, which is already in operation, and the potential approval of Coral North FLNG, could unlock an additional 3.4 million tons per annum (tpa) of LNG. In addition, the consultancy considers Phase 1 of BP’s Tortue project, located between Senegal and Mauritania, to be a game changer, predicting that it could add 2.5 million tpa of LNG, increasing regional exports by 20%.
Miriam Ofori, an analyst at Wood Mackenzie, commented on the resurgence of deep-water exploration in sub-Saharan Africa, highlighting the discoveries in the Orange Basin as potential reducers of the region’s resource scenario in the coming years. For his part, Jean-Jacques Fortin, CEO of TotalEnergies Africa, expressed the company’s commitment to investing in sub-Saharan Africa’s upstream sector, both in exploration and development projects, highlighting the region’s long-term energy potential.
Wood Mackenzie also highlighted the economic impacts of these projects, forecasting the creation of more than 50,000 new jobs in the exploration, development and construction phases. The consultant estimates that the increase in LNG production and exports could boost government revenues by up to 10 billion dollars a year, through royalties and taxes. In addition, Wood Mackenzie mentioned the positive impact on infrastructure development, predicting that investments in pipelines, processing facilities and export terminals will stimulate the development of these infrastructures in resource-rich regions.
The consultant also highlighted the opportunities for local content, pointing out that governments are prioritizing policies that create opportunities for national companies and service providers to participate in the sector. In summary, Wood Mackenzie emphasized that as sub-Saharan Africa’s upstream sector charts an exciting trajectory, these developments not only represent energy breakthroughs, but also promise economic growth and sustainable development across the region.
