LNG requires innovative technologies

By By BEATUS RWECHUNGURA 

DESIGNING and developing a venture as complex as the Tanzania Gas and LNG (Liq­uefied Natural Gas) Project (LNG) requires careful plan­ning, considered strategy and the use of various innovative technologies.

The LNG is set to be the largest infrastructure project in Tanzania’s history and it has the potential to transform the country’s economy. How­ever, that will mean ensuring the right infrastructure is in place and that the most ben­eficial processes are utilised.

So, what are the technolo­gies that will be used to guar­antee the LNG flourishes? What are the difficulties as­sociated with constructing a project on such a colossal scale? And how can we be sure the undertaking will be successful?

A specialist team

Let’s tackle that last ques­tion first. The LNG is being developed by some of the most experienced names in the oil and gas business. Shell, ExxonMobil and Statoil are all involved, with each organ­isation containing a wealth of expertise upon which to draw. These are companies that be­tween them have completed successful LNG projects in numerous locations around the world and it is in their best interests to see the LNG pros­per.

Capturing the gas

Attempting to unearth any fossil fuel is a process that re­quires measured procedures and appropriate equipment. Safely obtaining natural gas is complicated and delicate at the best of times, but with the LNG there are numerous other obstacles to overcome.

For starters, the vast ma­jority of Tanzania’s gas re­serves are located far beneath the Indian Ocean. While Tan­zania has estimated in-place natural gas reserves of 57 trillion cubic feet, approxi­mately 49.5 trillion cubic feet is located offshore. Not only are the reserves far below sea level – some are in areas where the water is 2,500m deep – but a number of the sites are as far as 100km away from the shoreline. And, as if that wasn’t enough, the ocean floor in this particular region has countless canyon systems, making drilling even more problematic.

Though companies like Shell have developed a vari­ety of LNG projects around the world, Tanzania provides a completely new challenge. Bespoke drilling and produc­tion equipment will need to be created, and other pieces of high-tech machinery will need to be adapted to work in such a unique natural environment.

Infrastructure

But it’s not just extracting the gas that necessitates the use of advanced technology. Processing and storing the gas once it has been obtained and subsequently exporting it, will also require significant techni­cal input.

The current plan is to build an onshore LNG storage terminal in Likong’o village near the town of Lindi, on the Indian Ocean coast. This will enable Tanzania to export natural gas - in the form of LNG - around the world. Such investment in infrastructure will also have the potential to develop and expand various other industries and sectors within Tanzania, therefore growing the economy further.

The need for investment

Of course, none of this can happen without adequate investment. Advanced tech­nology is costly and proving the viability of the project, as well as showcasing its capac­ity to flourish for many years to come, will be key to eradi­cating any investor reluctance.

LNG is playing an increas­ingly vital role in the future of global energy generation and there are huge opportunities available in the companies and governments that are able to manufacture the right infrastructure and effectively export this valuable resource.

The major oil companies clearly believe that LNG is something worth investing in. Shell, for example, has recently finished design­ing and building Prelude, a floating LNG facility that is, at the time of writing, the largest offshore facility ever constructed. Analysts sug­gest the cost of developing the vessel to be somewhere in the region of US$12.6 billion, which is not a sum of money any organisation would part with unless they are confident it will reap re­wards.

According to the Interna­tional Energy Agency, global demand for natural gas could rise by more than half by 2040 and the LNG will place Tanzania at the very heart of LNG’s future. If Tanzania can secure adequate invest­ment and support from the government, as well as the key investors - Shell, Statoil, ExxonMobil, Ophir Energy and Pavilion Energy– while also ensuring each party un­derstands, acknowledges and agrees upon terms, the proj­ect will be well on the way to transforming Tanzania’s exporting fortunes and im­proving the lives of people throughout the country.