After years of delays and setbacks, US oil and natural gas exploration and production company, Anadarko, has been given the go-ahead to develop Mozambique’s first onshore LNG facility.
At USD20 billion, the final investment decision for the Area 1 Mozambique LNG project is the largest oil and gas sanction in sub-Saharan Africa. Attention is now turning to the second LNG mega-project that is seeking a final investment decision – the ExxonMobil-led Rovuma development, also in Mozambique.
Much like the Anadarko project, Rovuma LNG has been seeking sanction for over four years, according to Jon Lawrence, an analyst with Wood Mackenzie’s sub-Saharan Africa upstream team. He said: “With strong LNG demand growth out of Asia, now is Mozambique’s time.”
Lawrence anticipates that the two LNG projects will be the second and third-most valuable oil and gas sanctions taken this year, after Arctic LNG-2 in Russia.
The Area 1 Mozambique LNG project will initially comprise two trains on the Afungi peninsula in the north of the country with a total capacity of 12.88 million tonnes per year.
Anadarko and its partners will be responsible for building support facilities that will be shared with another 15.2 million tonnes per year LNG project using gas extracted from the offshore Area 4 block.
A joint venture of McDermott, Chiyoda and Saipem will build the two liquefaction trains for the Area 1 Mozambique LNG project.
TechnipFMC was awarded a major contract for the EPCI of the subsea hardware system. It will execute the offshore installation scope with its consortium partner Van Oord. Its US incorporated subsidiary FMC Technologies will provide subsea hardware in support of well construction and the EPCI scope.
Oceaneering International will also provide subsea umbilicals and distribution hardware. Advanced Technology Valve will supply pipeline subsea balls and subsea gate valves. Cameron Italy will deliver subsea chemical injection metering valves.
Indeed, opportunities aplenty are arising in Southern and East Africa, and Mozambique has garnered the vast majority of headlines. With its first LNG development moving one step closer to reality, the country is securing its position as one of the most promising African markets for the project logistics industry.
