East Africa’s first onshore LNG project has reached its final investment decision
Mozambique LNG, East Africa’s first onshore LNG project has been given the green light after Andarko Petroleum announced its FID on the Area 1 Mozambique LNG project.
The official declaration of FID was made at a sanctioning event in Maputo, Mozambique, attended by Mozambique President Filipe Nyusi, the Minister of Mineral Resources Ernesto Max Tonela and Anadarko chairman and chief executive Al Walker.
"Today’s sanctioning of the Anadarko-led Area 1 Mozambique LNG project solidifies a path toward the creation of thousands of jobs for our people, significant economic growth for our nation, and the potential to be one of the world’s largest providers of cleaner energy for decades to come”, said President Nyusi. “It is truly one of the most important and transformational projects in our country’s history."
Mr Walker said the Area 1 Mozambique LNG project was “ideally located to meet growing demand, particularly in expanding Asian and European markets".
The Anadarko-led Area 1 Mozambique LNG project will be Mozambique’s first onshore LNG development, initially consisting of two LNG trains with total nameplate capacity of 12.88 mta to support developing the Golfinho/Atum fields located entirely within Offshore Area 1. The project has successfully secured in aggregate 11.1 mta of long-term LNG sales (representing 86% of the plant’s nameplate capacity) with key LNG buyers in Asia and in Europe. Additionally, the project is expected to have a significant domestic gas component for in-country consumption.
The Anadarko-led Area 1 Mozambique LNG project has been designated as ’first mover’ by the Mozambique Government, meaning Area 1 will also be responsible for constructing the support facilities to be shared between Area 1 and Area 4 projects, which will include the materials offloading facility and the LNG marine terminal.
The project expects to soon issue notices to proceed under the terms of the previously executed engineering, construction, procurement and installation contracts and finalise financing.
CCS JV, a consortium consisting of McDermott, Chiyoda and Saipem was issued the engineering, procurement and construction contracts for the Mozambique LNG liquefaction facility and support facilities.
Anadarko Moçambique Área 1, Lda, a subsidiary of Anadarko Petroleum Corp, operates Offshore Area 1 with a 26.5% working interest. Other investors in the project are include ENH Rovuma Área Um, S.A. (15%), Mitsui E&P Mozambique Area1 Ltd. (20%), ONGC Videsh Ltd. (10%), Beas Rovuma Energy Mozambique Limited (10%), BPRL Ventures Mozambique B.V. (10%), and PTTEP Mozambique Area 1 Limited (8.5%).