Kosmos Energy Announces First Gas at the Greater Tortue Ahmeyim LNG Project in Mauritania and Senegal

Kosmos Energy (NYSE/LSE: KOS) has achieved first gas production at the Greater Tortue Ahmeyim (GTA) LNG project offshore Mauritania and Senegal, as announced by operator bp plc. Gas began flowing on December 31, 2024, from wells to the floating production storage and offloading vessel, preceding delivery to the floating LNG vessel for liquefaction.

Once fully commissioned, GTA Phase 1 is expected to produce approximately 2.3 million tonnes of LNG per annum, with the floating LNG vessel having a nameplate capacity of about 2.7 mtpa. The first LNG cargo is anticipated in Q1 2025, marking the start of revenue recognition from the project.

The company aims to reach a production target of ~90,000 boepd, with plans to reduce capital expenditure and generate free cash flow for debt reduction, targeting a leverage ratio below 1.5x.

The achievement of first gas at the Greater Tortue Ahmeyim LNG project marks a pivotal milestone for Kosmos Energy's growth trajectory. The 2.3 million tonnes per annum LNG production capacity represents a substantial revenue stream, particularly given current global LNG demand dynamics. The project's strategic location in West Africa positions it advantageously for exports to both European and Asian markets.

The timing of revenue recognition in Q1 2025 coincides with projected strong LNG pricing environments. The targeted production increase to 90,000 boepd will significantly boost Kosmos's output profile. Most critically, the company's focus on debt reduction and achieving a leverage ratio below 1.5x demonstrates sound financial management, especially as capital expenditure requirements decrease post-project completion.

This development represents a transformative event for Kosmos's financial profile. The transition from capital-intensive development to cash-generating production phase will substantially improve free cash flow metrics. With a market cap of $1.61 billion, the additional LNG revenue stream could materially impact the company's valuation multiples.

The debt reduction strategy, coupled with falling capex requirements, suggests strong potential for balance sheet optimization in 2025. The expected leverage ratio target of below 1.5x would position Kosmos more favorably among peers and potentially lead to improved borrowing terms and credit ratings. This financial strengthening comes at an opportune time as global energy markets continue to prioritize LNG infrastructure.