I.M. Skaugen delays African small-scale LNG project

I.M. Skaugen delays African small-scale LNG project

Norway-based marine transportation service company I.M. Skaugen’s small-scale LNG project in Africa is facing delays due to pending government approvals. 

I.M. Skaugen said it continues making progress on the project, noting that all site-specific equipment required has been shipped to its location and installed.

The power plant client, with I.M. Skaugen is readying the facility to receive liquefied natural gas. Complete gassing up and cooldown of the receiving and regas facilities with liquid nitrogen has been performed for the first power plant and no major deficiencies have been observed, the company’ statement reads.

In line with the project progression on site, the first gas was expected to be transported in July 2017 under the agreements re-confirmed in May and June 2017.

Financial close under the agreements has been pending completion of the full package of project agreements, which in turn been reliant on finalization of all relevant government approvals.

Although IMS expects the clients will obtain all the government approvals, it believes delays are inevitable.

Due to the expected delays, the company has deferred the commissioning for first gas, adding the financial close of the project is expected in August, rather than July as previously anticipated.

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