Anadarko sanctions Mozambique LNG construction

U.S. independent Anadarko and its co-venturers in Mozambique’s Offshore Area 1 have reached the final investment decision (FID) on Area 1 Mozambique LNG project.

The FID confirms the Area 1 plan of development is now effective with notice provided to the government of Mozambique that all conditions precedent have been fulfilled, and the project can now advance to the construction phase, Anadarko said in a statement.

The Anadarko-led Area 1 Mozambique LNG project will be Mozambique’s first onshore LNG development, initially consisting of two LNG trains with a total nameplate capacity of 12.88 million tonnes per annum (mtpa) to support the development of the Golfinho/Atum fields located entirely within Offshore Area 1.

The project has secured in aggregate 11.1 mtpa of long-term LNG sales (representing 86 percent of the plant’s nameplate capacity) with key LNG buyers in Asia and in Europe. Additionally, the project is expected to have a significant domestic gas component for in-country consumption to help fuel future economic development.

Area 1 will also be responsible for constructing the support facilities to be shared between Area 1 and Area 4 projects, which will include the materials offloading facility and the LNG marine terminal.

In addition, Area 1 has approximately 5,000 workers on-site progressing works associated with the construction of a resettlement village, camp expansion, airstrip, and Palma-Afungi Highway.

The project expects to soon issue notices to proceed under the terms of the previously executed engineering, construction, procurement and installation contracts and finalize financing, the statement reads.