July 01, 2019 [Tank News International] – Anadarko Petroleum Corporation and the co-venturers in Mozambique’s Offshore Area 1, have announced a Final Investment Decision (FID) on the Anadarko-led Area 1 Mozambique LNG project.
This official declaration of 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.
“This is an exciting day for Mozambique and for our partnership, bringing us a step closer to making Mozambique’s first onshore LNG facility a reality,” said Anadarko Chairman and CEO, Al Walker.
“The Anadarko-led Area 1 Mozambique LNG project has come a long way from our first discovery to FID for the construction of the initial two-train development project. I want to say a collective ‘thank you’ to the world-class LNG team we have assembled at Anadarko, our co-venturers, long-term foundation customers, lenders, the people of the Cabo Delgado region, and the Government of Mozambique.
“As the world increasingly seeks cleaner forms of energy, the Anadarko-led Area 1 Mozambique LNG project is ideally located to meet growing demand, particularly in expanding Asian and European markets. We look forward to safely executing the next phase of this project for the long-term benefit of Mozambique, its people, our partnership, and our customers.”
The Anadarko-led Area 1 Mozambique LNG project will be Mozambique’s first onshore LNG development, initially consisting of two LNG trains with 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 successfully 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.
As previously announced, the Anadarko-led Area 1 Mozambique LNG project has been designated as “First Mover” by the Government of Mozambique, meaning 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 today 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 finalise financing.
A consortium consisting of McDermott, Chiyoda and Saipem (CCS JV) has been awarded the EPC contracts for the Mozambique LNG liquefaction facility and support facilities.