Wood Mackenzie: Mozambique LNG one of top three sanctions this year
Anadarko’s Mozambique LNG project is deemed as one of the top three most valuable oil and gas sanctions taken this year, according to consultancy group Wood Mackenzie.
U.S. independent Anadarko and its co-venturers in Mozambique’s Offshore Area 1 formally sanctioned its Mozambique LNG project last week.
Anadarko is developing Mozambique’s first onshore LNG facility, initially consisting of two LNG trains with a total nameplate capacity of 12.88 million tonnes per annum (mmtpa). Feedgas comes from the Golfinho/Atum field.
Jon Lawrence, an analyst with Wood Mackenzie’s sub-Saharan Africa upstream team, said: “Mozambique LNG is one of two LNG mega-projects that have been seeking sanction for over four years in Mozambique.
“The other is the ExxonMobil-led Rovuma LNG development. With strong LNG demand growth out of Asia, now is Mozambique’s time. At $20 billion, […] FID is the largest sanction ever in sub-Saharan Africa oil and gas.”
According to WoodMac, the two Mozambique LNG projects could the second and third most valuable oil and gas sanctions taken this year after Arctic LNG-2 in Russia.
“We believe that, from the early 2030s, state revenue from Mozambique LNG alone will reach $3 billion per annum, single-handedly doubling today’s revenue, as calculated by the IMF and World Bank,” Lawrence added.
Frank Harris, Head of LNG Consulting at WoodMac, said: “Flexible commercial arrangements, including an innovative co-purchase agreement with Tokyo Gas and Centrica, have been instrumental in securing the project a roster of high-quality customers in a crowded LNG market.”
It is worth noting that, following the FID, Anadarko awarded a series of contracts for work on the Mozambique LNG project.
Namely, Anadarko awarded deals to a JV between McDermott, Saipem, and Chiyoda for an EPC work on all components of two onshore LNG trains on the project. Van Oord and TechnipFMC won a deal for EPCI work on the subsea systems.
Also, Oceaneering was awarded a contract by Anadarko for the provision of umbilicals, distribution hardware, and aftermarket services to the Mozambique LNG project.
List of related news articles
-
Posted: about 1 month ago
WoodMac: 2-degree world to strand 12 trillion cbm of new gas
Over three quarters or 77 per cent of new LNG supply are at risk under a 2-degree scenario, accordin...
Posted: about 1 month ago -
Posted: 12 days ago
Total reduces Mozambique LNG staff due to insurgents attacks
French major Total has requested a portion of its staff working at its $20 billion Mozambique LNG pr...
Posted: 12 days ago -
Posted: 3 months ago
Wood Mackenzie: LNG demand doubling over the next 20 years
After a record 70 mmtpa of new LNG capacity was sanctioned in 2019, this year and 2021 had at least ...
Posted: 3 months ago -
Posted: about 1 month ago
WoodMac: Australia to see $11 bln worth of FIDs in 2021
Australian operators are expected to sanction some $11 billion worth of gas projects in 2021, follow...
Posted: about 1 month ago