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Ophir Energy and OneLNGSM to Invest USD2 Million for the Fortuna FLNG Project

Growing exploration & production activities in the UK is expected to drive the LNG market globally

United Kingdom: Ophir Energy and OneLNGSM, a joint venture between subsidiaries of Golar LNG and Schlumberger signed an agreement to form a joint operating company (JOC) to develop the Fortuna project, in Block R, offshore Equatorial Guinea. This JOC is expected to facilitate the financing, construction, development and operation of the integrated Fortuna project. OneLNG and Ophir will have 66.2% and 33.8% ownership of the JOC, respectively and the total capital expenditure expected for the project to reach first gas is approximately USD2 billion. The final investment decision is expected to occur in first half of 2017 and first gas is anticipated in the first half of 2020. The initial offtake is expected to be 2.2-2.5 MTAP for at least 15-20 years.

Techsci Research depicts that recovering oil prices, increasing exploration & production activities and surging investments in refinery industry are the other major factors anticipated to boost demand for natural gas over the next five years, globally. Also, increasing focus on development of adequate support infrastructure in various developing as well as developed economies is expected to boost LNG demand in the coming years

According to released report of TechSci Research Global LNG Market Forecast and Opportunities, 2011-2025”, global LNG supply market is forecast to exhibit a CAGR of over 5% during 2016-2025.   Inadequate pipeline infrastructure is expected to anticipate demand for small scale LNG projects to supply natural gas to key consumers in remote areas, especially in power and industrial sectors. Increasing urbanization, growing industrialization and rising number of projects related to power, city gas distribution, petrochemical, etc., are expected to positively influence global LNG market during 2016 – 2025. 

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