Rosneft Inks Ghana LNG, Other Africa Accords
Russian state-run oil giant Rosneft said May 25 it signed 'a package of documents' with state-owned Ghana National Petroleum Corporation (GNPC) for delivery to the port of Tema (Ghana) over 12 years of some 1.7mn mt/yr of LNG including its regasification at the port of Tema. They were signed at the St Petersburg International Economic Forum (Spief) but Rosneft said they require approval by both boards.
It did not, however, explicitly say this was a long-term sale and purchase agreement, so may be a master sale agreement. Rosneft though said its supplies could "satisfy a quarter of Ghana's energy demand."
At present, however, there are no LNG import terminals in Ghana, and moves to develop three such projects have either collapsed or been deferred.
Rosneft said it also signed a framework co-operation agreement that envisages a joint study of projects, including joint oil and gas field development, and supplies of oil and products.
In September 2017, another Russian state-run giant, Gazprom, signed a gas sales agreement with GNPC whereby Gazprom will supply GNPC with 1.7mn mt/yr from 2019. Gazprom recently lifted the first cargo out of Cameroon FLNG and has a contract to offtake the latter's entire production. The first export cargo however is headed for China.
Rosneft only started LNG trading in 2016, with delivery of a non-equity cargo to Egyptian state gas holding Egas, and still has no equity interests in LNG-producing assets. It does however now a 30% interest in the giant Eni-operated Zohr gas field offshore Egypt which is supplying that country's industrial and power-generation markets.
Among about eighteen announcements made by Rosneft at Spief on May 25, the oil giant also signed Africa-focused agreements with Oranto Petroleum and Egypt-focused Fleet Energy.
With Nigerian independent Oranto, Rosneft has agreed to study implementation of new upstream, refining, trading and gas monetisation projects on the African continent, including acquisition of new assets. Lagos-based Oranto Petroleum, jointly with its UAE-based parent Atlas Petroleum International, have 20 licences in ten countries of the continent, including Senegal, Ghana, Nigeria, South Sudan and others.
With Panama-registered and Dubai-based Fleet Energy and its subsidiary Fleetliner Energy, Rosneft will "explore the possibilities of establishing a joint venture in order to develop a supply chain for further gas supplies to industrial consumers in Egypt." Trader Fleet Energy's website says it already works with Rosneft Trading to supply oil products to Egyptian state EGPC. The website also says that Fleet Energy trades crude oil from countries such as Egypt, Libya and Iraq, and has been involved in importing LNG to Egyptian gas holding Egas.