Mozambique Area-1 LNG Project in Mozambique – 5 Things You SHOULD Know!

Mozambique Area-1 LNG project comprises of  the Golfinho-Atum gas field development. This is in the offshore Area 1 Block of the deep-water Rovuma Basin.

In addition, it comprises of the construction of a 12.88 million tonnes per annum (Mtpa) onshore liquefied natural gas (LNG) facility on the Cabo Delgado coast of Mozambique.

Anadarko Petroleum Corporation, through its wholly-owned subsidiary Anadarko Moçambique Área 1, holds majority stake in the Mozambique Rovuma Offshore Area 1 development consortium.

The final investment decision (FID) on the Area 1 Mozambique LNG project was taken in June 2019. It is estimated to cost about $20bn.

Construction works on the integrated LNG project started in 2019, with the start of production scheduled for 2024.

The Mozambique Area-1 LNG will be the first onshore LNG facility in Mozambique.

Mozambique Area-1 LNG Project History

In 2011 and 2012, gas and oil multinationals ENI from Italy and Anadarko from the U.S.A. made a huge discovery: a gas field containing 7000 billion cubic meters of gas, just off the coast of Cabo Delgado, Mozambique’s northernmost province.

This has become the world’s fourth largest offshore gas project. The discovery is worth hundreds of billions of dollars.

Mozambique is emerging as a future leader in the global LNG industry, and this is as it works to develop an LNG facility on the Afungi peninsula in Cabo Delgado province.

With approximately 75 trillion cubic feet of recoverable natural gas discovered in the Area 1, the Mozambique LNG Project represents an extraordinary opportunity to meet increasing world demand for a energy.

To start, environmental impact assessment (EIA) for the Mozambique Area-1 LNG project was carried out between 2011 and 2014.

Thereafter, the Mozambican Ministry of Coordination of Environmental Affairs (MICOA) approved the EIA report in June 2014.

Finally, the concessions to design, build and operate the marine facilities for the project were secured from the Government of Mozambique in July 2017.

Most importantly, the Government of Mozambique gave the final approval for the Mozambique Area-1 LNG development plan in March 2018.

Mozambique Area-1 LNG Project Details

The Golfinho-Atum gas field is located in 1,600m-deep waters within the Rovuma Basin Area 1, approximately 40km off the coast of Cabo Delgado. The Offshore Area-1 is estimated to contain 75 trillion cubic feet (tcf) of recoverable natural gas resources.

The LNG processing and export facility will be developed in the Afungi peninsula in Cabo Delgado, the northernmost province of Mozambique.

Mozambique Area-1 LNG Project Operator and Partners

Anadarko holds 26.5% interest in the Rovuma Area 1 exploration and production concession. The other licensees are ENH Rovuma Área Um (15%), Mitsui E&P Mozambique Area1 (20%), ONGC Videsh (10%), Beas Rovuma Energy Mozambique (10%), Bharat Petroresources Limited (BPRL) Ventures Mozambique (10%), and PTTEP Mozambique Area 1 (8.5%).

Beas Rovuma Energy Mozambique (BREM) is a joint venture between ONGC Videsh (60%) and Oil India Limited (OIL, 40%), while BPRL is a wholly-owned subsidiary of Bharat Petroleum, another state-controlled oil and gas company of India.

Mozambique Area-1 LNG Facility

The Mozambique Area-1 LNG facility will consist of two liquefaction trains with a combined nameplate capacity of 12.88Mtpa in the initial phase. It will also house gas pre-treatment facilities and full-containment LNG storage tanks. The LNG production capacity of the facility is proposed to be further expanded up to 50Mtpa in future.

The plant will receive feed gas supply from the Golfinho-Atum gas field through pipeline and produce LNG for export to the Asian and European markets, as well as for domestic consumption in Mozambique.

Other support facilities for the LNG plant will include materials offloading facility and an LNG marine terminal capable of accommodating large LNG carriers, which will also be shared with upcoming Area 4 LNG projects.

LNG off-take

Mozambique Area-1 LNG project is backed with 11.1Mtpa of long-term LNG off-take agreements.

The customers for the project include Electricite de France (EDF, 1.2Mtpa), Japan’s JERA and Taiwan’s CPC Corporation (1.6Mtpa), CNOOC Gas and Power Singapore (1.5Mtpa).

Similarly, Tokyo Gas and Centrica (2.6Mtpa), Shell International Trading Middle East (2Mtpa), Bharat Petroleum Corporation (1Mtpa), and Indonesia’s Pertamina (1Mtpa) are also customers.

In addition, Anadarko signed a memorandum of understanding (MoU) with the Government of Mozambique in December 2015, to provide 100 million cubic feet of gas a day (Mmcfd) from the facility for domestic consumption.

Contractors and Suppliers

A consortium of McDermott, Chiyoda Corporation, and Saipem is responsible for the engineering, procurement, and construction (EPC) of the onshore liquefaction plant along with its support facilities.

The joint venture of CB&I (now McDermott), Chiyoda and Saipem (CCS JV) also provided the front-end engineering and design (FEED) for the LNG facility.

TechnipFMC, in consortium with Van Oord, is the engineering, procurement, construction, and installation (EPCI) contractor. This is for the offshore subsea system for the project.

Allseas will be engaged as a major subcontractor for the offshore installation works.

TechnipFMC will also provide subsea trees, subsea controls systems, production manifolds, subsea connectors, in addition to completion workover riser & installation workover control system for the subsea gathering system, through its subsidiary FMC Technologies.

Oceaneering International is the supplier of subsea umbilicals and distribution hardware, while Advanced Technology Valve will provide pipeline subsea ball and subsea gate valves.

Cameron Italy will supply the subsea chemical injection metering valves for the Mozambique Area-1 LNG project.

Conclusion

If you would like to work in this Mozambique Area-1 LNG Project, and if it’s something you want to improve in continually, then you can have a more secure footing in your space.

I would be glad to help!

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