Mozambique LNG project FID taken by Anadarko and partners

Mozambique LNG project FID : Anadarko Petroleum and its Mozambican Offshore Area 1 partners have made a final investment decision (FID) on the Mozambique LNG project, an onshore natural gas liquefaction project to be developed with an investment of $20 billion in Cabo Delgado province.

As per the latest oil and gas industry news, the LNG project in Mozambique will initially have a couple of LNG trains with a total capacity of 12.88 million tonnes per annum (MTPA) apart from associated infrastructure, export jetty facilities, and storage tanks.

Comments on Mozambique LNG project FID

Filipe Nyusi – the Mozambican President, commenting on the Mozambique LNG project FID, said: “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. It is truly one of the most important and transformational projects in our country’s history.”

The Mozambique LNG project will support the production of natural gas from the Golfinho/Atum field located in the offshore Rovuma Basin within the Offshore Area 1 concession. About 100 million cubic feet of natural gas a day (MMcfd) is expected to be delivered by the Offshore Area 1 field to the Mozambican LNG project.

Prior to taking the FID, Anadarko Petroleum awarded the EPC contract for the Mozambique LNG project to the CCS joint venture comprising Saipem, Chiyoda and McDermott International.

Anadarko Petroleum and its partners announce Mozambique LNG project FID. Photo courtesy of Philcomanforterie/Wikipedia.org.

Commenting on the Mozambique LNG project FID, Al Walker – Chairman and CEO of Anadarko Petroleum said: “The Anadarko-led Area 1 Mozambique LNG project has come a long way from our first discovery to FID for the construction of the initial two-train development project.

“I want to say a collective ‘thank you’ to the world-class LNG team we have assembled at Anadarko, our co-venturers, long-term foundation customers, lenders, the people of the Cabo Delgado region, and the Government of Mozambique. As the world increasingly seeks cleaner forms of energy, the Anadarko-led Area 1 Mozambique LNG project is ideally located to meet growing demand, particularly in expanding Asian and European markets.”

Anadarko Petroleum, which is set to be acquired by Occidental Petroleum in a $57 billion deal (Occidental acquisition of Anadarko), is the operator of Offshore Area 1 with a stake of 26.5%. The other participants in Offshore Area 1 are Mitsui E&P Mozambique Area1 with 20% stake, ENH Rovuma Área Um with 15% stake, India‘s ONGC Videsh, Beas Rovuma Energy Mozambique, BPRL Ventures Mozambique – which all hold 10% stake each, and PTTEP Mozambique Area 1 with 8.5% stake.

In a related development, Anadarko Petroleum has given a contract of over $1 billion to  TechnipFMC to provide engineering, procurement, construction and installation (EPCI) services for the subsea hardware system to be used in the Golfinho/Atum development. As per the contract, TechnipFMC with its consortium partner Van Oord will execute the offshore installation scope of the project.