West Africa LNG Demand Analysis
Sub-Saharan AfricaOctober 22, 2020
IFC is developing an LNG terminal situated in the harbor of Freetown, Sierra Leone, based around a floating storage unit (FSU). The envisioned facility would be comprised of an FSU, a mooring system, two small LNG carriers, and a small onshore facility with regasification, truck and ISO container filling capabilities. With this combination of assets, the LNG terminal company would be able to provide LNG and natural gas in Freetown and deliver small parcels of LNG to ports in Guinea (Kamsar, Conakry) and Liberia (Buchanan, Monrovia).
K&M was hired to perform the demand analysis for potential LNG / gas off takers in Guinea, Liberia, and Sierra Leone.
K&M’s scope of work includes:
Performing an Industrial and Mining Demand Analysis: The project will include the means to put LNG onshore, where there will be the capability to load LNG trucks and ISO containers and to provide a regas service. Within the Sierra Leone market, there is potential for broad uptake of LNG by industrial users in the food & beverage, agribusiness, cement, hospitality, and other segments, most of which would be served via LNG trucking. In addition, the LNG terminal expects to provide a regas service for the Western Area Power Generation Project that is under development with a target COD of 2022.
Establishing a Sierra Leone LNG Users Forum: K&M will design an users forum that is proto-LNG consumer organization designed to provide information about LNG to potential users, help them understand competitive fuel economics, and map LNG demand in Sierra Leone by location, size, sector, and other relevant aspects. The forum will be a vehicle for raising the profile of the LNG terminal project within Sierra Leone.
Conducting the Guinea Demand Assessment: Detailed work is required to understand the depth and breadth of demand from the Kamsar-Boke bauxite corridor in Guinea as well as potential thermal power and industrial demand in and around Conakry. In the mining sector, K&M will assess both short-term demand for LNG-to-power and medium-term demand related to mining equipment (diesel to LNG conversion) and alumina refining. As there may be some level of industrial and commercial demand for LNG in the Conakry area, K&M’s demand assessment will cover this area as well.
Establishing a Virtual Guinea Miners LNG Users Forum: K&M, working with the Guinean mining and industry associations, will create a virtual Guinea LNG users forum, with an objective of convening potential users and facilitating the exchange of information. The key mines are bauxite operations in the Kamsar-Boke corridor; currently there is a market for LNG in power and ore drying operations, and this may grow significantly as operators invest in alumina refining.
Undertaking a Thermal Power Generation Demand Assessment for Liberia Electricity Corporation: Anecdotal evidence suggests that there is an immediate need for up to 50 MW of LNG-fired power in Monrovia that would be used to complement hydropower and serve as a load-area reserve for LEC. K&M will explore this possibility in its demand assessment.
Carrying out a Liberia Mining Demand Assessment: K&M will carry out a high-level assessment of LNG demand in the Liberian mining sector, extending beyond demand coming from the significant Arcelor-Mittal operations in the country.