Mozambique: LNG project in the pipeline

Mozambique: LNG project in the pipeline

An American petroleum company, Anadarko, is confident about its plans of constructing a LNG plant in the northern province of Cabo Delgado, Mozambique.

In southern Africa, the Mozambican government together with Anadarko have announced that progress has been made towards the implementation of a liquefied natural gas (LNG) plant.

Last week, Prime Minister Carlos Agostinho do Rosario met with the representatives of the petroleum corporation in Maputo, News Agency reported.

According to the media, the meeting was a follow-up to President Filipe Nyusi’s visit in September to the Anadarko headquarters in the US.

The chairperson of Mozambique’s National Petroleum Institute, Carlos Zacarias, highlighted: “We have held this sort of meeting regularly.”

Zacarias added: “It was a good meeting, and we could see that there are palpable and positive results. Naturally they need to be gone into in greater depth to implement the project in the Rovuma Basin.”

LNG project concludes technical aspects

Media reported that Anadarko vice-President John Grant said that great progress has been made with the legal aspects of LNG project implementation.

Grant said: “Also discussed were technical aspects concerning construction of the port, of the maritime terminal and of the LNG factories.”

It is reported that the meeting with the Prime Minister also covered the resettlement of people living in the Afungi Peninsula, in Palma district, where the factories will be built.

Anadarko is the operator of Rovuma Basin Offshore Area One, with a holding of 26.5%.

Other members of the consortium include Mitsui of Japan (20%), the Indian companies ONGC Videsh (16%), Oil India (4%) and BRPL Ventures (10%), PTT of Thailand (8.5%), and Mozambique’s own National Hydrocarbon Company, EMH (15%).

Natural gas reserves

So far, the exploration of Area One indicates that it contains more than 75 trillion cubic feet of recoverable natural gas reserves, media reported.

The consortium hopes to begin LNG production in the first quarter of 2020. However, Anadarko has not yet announced its final investment decision.

It is reported that ENH chairperson Oscar Mitha said he was not expecting the decision until Q3 2017.

Initially, Anadarko is targeting to produce 12 million tonnes of LNG a year, using two factories known as ‘trains’, and later on it hopes to raise production to 20 million tonnes a year.

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