BP plc BP, the UK-based energy major, has reached a milestone in its ambitious Greater Tortue Ahmeyim (“GTA”) liquefied natural gas (LNG) project, located off the coasts of Mauritania and Senegal. This achievement marks a critical step in the commissioning of Golar LNG’s floating liquefied natural gas (FLNG) vessel, Gimi, as it receives feed gas from the project’s FPSO.

The GTA Phase 1 project, considered BP’s largest and most complex undertaking, commenced the first gas flow from its subsea wells to the FPSO GTA in recent weeks. On Jan. 18, 2025, the FLNG Gimi received feed gas from the FPSO, enabling full commissioning activities. This process followed initial commissioning work using gas from a British Sponsor LNG carrier.

Golar LNG has described this development as a “key milestone” in the ramp-up of commissioning activities. The first export cargo of LNG is expected by the first quarter of 2025, with full commercial operations slated for the second quarter, contingent on meeting all necessary conditions.

The completion of the commissioning phase will initiate a 20-year lease and operate agreement, unlocking approximately $3 billion in adjusted EBITDA backlog for Golar LNG. This agreement includes recognition of both capital and operational payments.

The GTA Phase 1 development features Africa’s deepest subsea infrastructure, with wells reaching water depths of up to 2,850 meters. The project is set to produce 2.3 million tons of LNG annually for over two decades. Gas from subsea wells is processed aboard the FPSO GTA before being transported to the FLNG Gimi for liquefaction and export.

BP, holding a 56% working interest in the project, regards GTA as a cornerstone of its global portfolio, supported by approximately 15 trillion cubic feet of recoverable gas resources. Partner companies include Kosmos Energy (27%), Petrosen (10%) and SMH (7%).

Beyond GTA, BP continues to advance other global projects, including ongoing drilling and subsea commissioning operations in the Mediterranean Sea. These activities underscore BP’s commitment to expanding its energy footprint and delivering long-term value to stakeholders.

As BP progresses with its GTA project, the achievement of this milestone not only reinforces the company's position as a leader in deepwater gas developments but also highlights the strategic importance of LNG in its future energy mix. The successful commissioning of FLNG Gimi sets the stage for a new era of energy production in Africa.

BP’s Zacks Rank & Key Picks

BP currently carries a Zack Rank #3 (Hold).

Investors interested in the energy sector may look at some better-ranked stocks like SM Energy Company SM, Sunoco LP SUN and Range Resources Corporation RRC. While SM Energy and Sunoco presently sport a Zacks Rank #1 (Strong Buy) each, Range Resourcescarries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term value for shareholders.

Sunoco is a leading wholesale motor fuel distributor in the United States, boasting a vast distribution network spanning 40 states. With long-term contracts servicing more than 10,000 convenience stores, it distributes over 10 fuel brands, ensuring a stable revenue stream. Sunoco is poised to benefit from the strategic acquisitions aimed at diversifying its business portfolio.

Range Resources is among the top 10 natural gas producers in the United States. Its diversified portfolio is spread between low-risk and long reserve-life Appalachian assets. The company’s extensive inventory of Marcellus resources with low breakeven points is a significant asset. With expanded LPG export capacity, RRC is well-positioned to meet the rising global demand, capitalizing on the role of natural gas as a cleaner-burning fuel amid a low-carbon shift. 

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