Oil and Gas News

Anadarko to begin construction on $29bn LNG project

Anadarko Petroleum and its joint venture partners have made a final investment decision (FID) in favour of its $US20 billion ($29 billion) Mozambique LNG project.

The FID confirms that the Area 1 plan of development is effective with notice provided to the Government of Mozambique that all conditions have been fulfilled and the construction phase can get under way.

Anadarko’s project will be Mozambique’s first onshore LNG development, initially consisting of two LNG trains with total nameplate capacity of 12.88 million tonnes per annum.

This will support the development of the Golfinho/Atum fields located entirely within Offshore Area 1.

The project has secured an aggregate 11.1 million tonnes per annum of long-term LNG sales, which represents 86 per cent of the plant’s nameplate capacity, with key LNG buyers in Asia and Europe.

Additionally, the project is expected to have a significant domestic gas component for in-country consumption to help fuel future economic development.

The decision represents the largest single LNG project approved in Africa, with the FID providing clarity on the schedule of the construction of infrastructure.

This will be shared by the Anadarko-led Mozambique LNG project and the even larger Eni and ExxonMobil-led Rovuma LNG project, which paves the way for a near-term FID on the 15.2 million tonnes per annum Rovuma operation.

The Anadarko FID allows service contractor RBR Group to receive funding for skills assessment, training and recruitment services which it will supply to the project’s contractors.

The official declaration of FID was made at a sanctioning event in Maputo, Mozambique and attended by the country’s President, Filipe Nyusi who welcomed the project.

“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,” he said.

“It is truly one of the most important and transformational projects in our country’s history.”

Anadarko chief executive officer Al Walker said the project would benefit both the country of Mozambique and also Anadarko mutually.

“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,” he said.

“We look forward to safely executing the next phase of this project for the long-term benefit of Mozambique, its people, our partnership, and our customers.”

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