Anadarko sanctions Mozambique LNG project
Anadarko Petroleum has formally sanctioned its Mozambican LNG project, Mozambique LNG. Anadarko is developing Mozambique’s first onshore LNG facility, initially consisting of two trains with a total nameplate capacity of 12.88 million tonnes/year.
Anadarko Petroleum Corp. has formally sanctioned its Mozambican LNG project, Mozambique LNG.
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/year. Feed gas comes from Golfinho-Atum field in Offshore Area 1 where Anadarko and its partners have discovered 75 tcf of recoverable natural gas resources (OGJ Online, Feb. 5, 2019).
“At $20 billion, today’s [final investment decision] is the largest sanction ever in sub-Saharan Africa oil and gas,” said Jon Lawrence, an analyst with Wood Mackenzie’s sub-Saharan Africa upstream team, in a press statement.
“Mozambique LNG is one of two LNG megaprojects that have been seeking sanction for over 4 years in Mozambique,” Lawrence said. The other is the ExxonMobil Corp.-led Rovuma LNG development.
Lawrence said WoodMac expects the two Mozambique LNG projects to be the second and third most valuable oil and gas sanctions taken this year, after Arctic LNG-2 in Russia.
Supply agreements for the project as of May have exceeded 11.1 million tpy, Anadarko said (OGJ Online, May 13, 2019).
A deal to sell Anadarko to Occidental Petroleum Corp. is pending. Contingent upon the deal’s close, Oxy plans to sell Anadarko’s sub-Saharan Africa upstream assets—including its Mozambican holdings—to Total SA in an $8.8-billion deal set to close in 2020.
Anadarko’s partners in the Mozambique LNG project are Japanese company Mitsui, Mozambique’s state energy company ENH, Thailand’s PTT, and India’s Oil & Natural Gas Corp., Bharat Petroleum Resources, and Oil India Ltd.