• 4 days Nuclear Bomb = Nuclear War: Saudi Arabia Will Develop Nuclear Bomb If Iran Does
  • 3 days Statoil Changes Name
  • 4 days Tillerson just sacked ... how will market react?
  • 3 days Russian hackers targeted American energy grid
  • 3 days Is $71 As Good As It Gets For Oil Bulls This Year?
  • 4 days Petrobras Narrows 2017 Loss, Net Debt Falls Below $85bn
  • 4 days Proton battery-alternative for lithium?
  • 4 days Ford Recalls 1.38 Million Vehicles (North America) For Loose Steering Wheel Bolt
  • 3 days Oil Boom Will Help Ghana To Be One Of The Fastest Growing¨Economies By 2018!
  • 3 days Country With Biggest Oil Reserves Biggest Threat to World Economy
  • 4 days I vote for Exxon
  • 3 days HAPPY RIG COUNT DAY!!
  • 4 days UK vs. Russia - Britain Expels 23 Russian Diplomats Over Chemical Attack On Ex-Spy.
  • 4 days Why is gold soooo boring?
  • 4 days South Korea Would Suspend Five Coal - Fire Power Plants.
  • 3 days Spotify to file $1 billion IPO
Alt Text

Natural Gas Exports Could Be Hit By Trump’s Trade War

President Donald Trump’s controversial tariffs…

Alt Text

Huge Chinese Demand Fuels The Next U.S. Gas Boom

China’s push for cleaner cities…

Alt Text

China Plans Record Natural Gas, Coal Production In 2018

China expects to produce record…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Trending Discussions

A New World Order Is Emerging In Natural Gas

LNG tankers

Brazil’s Petrobras and partners produced their billionth barrel of oil from presalt fields this month. Underlining one of the biggest shifts to happen this decade in global crude output.

And news yesterday suggests we may be about to see another mega-shift in energy. In the worldwide natural gas business.

That was a deal struck by petro-major BP. Which is spending nearly a billion dollars to get into projects in an unexpected part of the world: western Africa.

BP said it has reached an agreement to buy stakes in development projects in Senegal and Mauritania. Which the major is acquiring from junior developer Kosmos Energy, in exchange for $162 million cash — and subsequent payment of $754 million in appraisal and development expenses.

That’s a big outlay for BP. But the prize on the western African licenses is commensurate — with Kosmos’ recently-discovered Tortue field in Mauritania holding a currently-estimated 15 trillion cubic feet of natural gas.

In fact, BP said it believes the complete acreage acquired under this deal could hold up to 50 trillion cubic feet. And those big numbers have the major eying the region as the world’s newest center for natural gas development.

BP’s chief executive officer Bob Dudley summed up these ambitions succinctly. Saying the company is looking to “create a new LNG hub in Africa.” One which he noted will be supported by low production costs and “advantaged access” to global gas markets. Related: Rosneft To Ramp Up Global Expansion Under Trump

Indeed, as the map below shows, Mauritania is well-located for shipping LNG to key markets in South America and Europe. Markets that are distant from much of the Asia-focused LNG production building taking place in countries like Papua New Guinea and Australia.

Mauritania (red peg) is located close to LNG consumers in Europe and South America

BP may thus be pioneering a “new world order” for natural gas. Zeroing in on new markets at a time when much of the focus has shifted to Asia.

That could be very good news for the West Africa energy complex. Helping to spur infrastructure development and investor confidence here. Watch for results from BP’s development drilling planned for 2017, and for further news on timing of development plans in this critical area.

Here’s to seeing the future.

By Dave Forest

More Top Reads From Oilprice.com:

Back to homepage

Trending Discussions

Leave a comment
  • Bill Simpson on December 26 2016 said:
    50 trillion cubic feet possible! Putin won't like that, but Europe will. BP might not have to cut their dividend much. It sure beats running out.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News