Global Energy Majors Advance $15 Billion in LNG, Offshore Oil Capacity
ExxonMobil, Commonwealth LNG, Eni, and PTTEP are progressing major production facilities across four continents, adding 3 million tonnes per year of LNG capacity and new offshore oil developments in Guyana and Malaysia.
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Four major energy developments spanning offshore Guyana, the U.S. Gulf Coast, Republic of Congo, and Malaysia are advancing toward production, representing a combined investment exceeding $15 billion as operators secure long-term offtake agreements and complete critical infrastructure milestones.
The projects reflect sustained global demand for hydrocarbon supply despite energy transition pressures, with operators prioritizing high-margin deepwater oil and contracted LNG volumes to anchor capital deployment through 2028.
Offshore Production Infrastructure Advances
ExxonMobil's Uaru field development offshore Guyana reached a critical milestone as Jumbo Offshore completed mooring pre-installation for the Errea Wittu floating production, storage and offloading (FPSO) vessel, according to Oil & Gas Journal Nigeria. The Uaru project, located in the prolific Stabroek Block, will add approximately 250,000 barrels per day of production capacity when operational, contributing to Guyana's target of exceeding 1.2 million bpd by 2027.
The Errea Wittu FPSO represents ExxonMobil's sixth production vessel in Guyanese waters, where the company has discovered more than 11 billion barrels of recoverable oil equivalent since 2015. Mooring installation typically precedes FPSO arrival by 6-9 months, positioning Uaru for first oil in late 2026 or early 2027.
In Southeast Asia, PTT Exploration and Production (PTTEP) reached final investment decision on its first greenfield development in Malaysia, targeting signed engineering, procurement, construction, installation and commissioning (EPCIC) contracts in early 2026 with potential first oil in 2028, Oil & Gas Journal Nigeria reported. While PTTEP did not disclose capital expenditure figures, comparable Malaysian deepwater developments typically require $2-4 billion depending on water depth and subsea architecture complexity.
U.S. LNG Export Capacity Secures Anchor Offtaker
Commonwealth LNG signed a 20-year supply agreement with Aramco Trading for liquefied natural gas from its under-development facility in Cameron Parish, Louisiana, marking a significant step toward final investment decision for the 8.4 million tonne per year project. According to Oil & Gas Journal Nigeria, project developer Caturus is working to secure remaining capacity commitments before sanctioning construction.
The Aramco Trading agreement follows a pattern of national oil companies securing long-term LNG positions in U.S. Gulf Coast projects, providing price-indexed supply flexibility compared to oil-linked contracts prevalent in Asia-Pacific markets. Commonwealth LNG's location adjacent to existing Cameron LNG infrastructure offers capital efficiency advantages through shared marine facilities and pipeline connectivity to Henry Hub-linked gas supply.
U.S. LNG export capacity is projected to reach 142 million tpy by 2028, according to the U.S. Energy Information Administration, with projects requiring 15-20 year offtake agreements covering at least 70% of nameplate capacity to achieve project financing.
African LNG Production Doubles Capacity
Eni delivered first cargo from the Nguya floating LNG vessel offshore Republic of Congo, completing Phase 2 of the Congo LNG project and doubling the nation's liquefaction capacity to 3 million tonnes per year, Oil & Gas Journal Nigeria reported. The Phase 2 expansion utilized the Marine XII FLNG unit, which processes associated gas from Eni's offshore oil production that was previously flared or reinjected.
The Congo LNG project represents a monetization solution for stranded gas resources common across West African oil provinces, where associated gas volumes often lack pipeline infrastructure to domestic markets. At current LNG prices averaging $12-14 per million British thermal units in Atlantic Basin markets, the 3 million tpy capacity generates approximately $2.5-3 billion in annual revenue at full utilization.
Eni operates the project through a joint venture with Société Nationale des Pétroles du Congo, with production primarily targeting European and Asian markets. The FLNG configuration avoids onshore liquefaction infrastructure costs that typically add $1,500-2,000 per tonne of annual capacity to project capital expenditure.
Market Outlook
The concurrent advancement of multiple LNG and offshore oil projects reflects operator confidence in sustained demand through the 2030s despite renewable energy growth. Global LNG demand is forecast to reach 700 million tpy by 2040, according to Shell's latest LNG Outlook, driven by coal-to-gas switching in Asia and baseload power requirements.
For offshore oil, deepwater projects in proven basins like Guyana and Malaysia offer breakeven prices below $40 per barrel, providing resilience against price volatility while major IOCs maintain capital discipline following the 2020 downturn. First oil dates extending to 2028 indicate operators are prioritizing execution quality over accelerated production, particularly in complex deepwater environments requiring extensive subsea infrastructure.