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FID on Mozambique LNG project expected in mid-2020

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According to Reuters, Total and its partners have revealed that a final investment decision on the US$3.15 billion Mozambique project will be taken around mid-2020.

The project will utilise a floating storage and regasification unit (FSRU) moored in the harbour Matola – a suburb of Maputo. This FSRU will reportedly be connected to a new gas-fired power plant located nearby, as well as to South Africa’s gas network.

According to Reuters, Total and its partners, including Gigajoule – a gas company focused on southern Africa – and Mozambique’s Matola Gas Co. (MCG), which operates a 100 km gas pipeline network in Maputo province, signed an agreement on Wednesday to develop the project.

The joint statement said: “[This] will accelerate the process which will enable a final investment decision to be taken by the middle of 2020”, adding that construction would then commence, and commercial operations would begin by the end of that year.

According to the statement, the gas pipeline network, harbour infrastructure and a connection to South Africa’s network will cost approximately US$350 million. The 2000 MW power plant, will cost approximately US$2.8 billion, and will be constructed in phases as the market develops.

Reuters reports that Total, MGC and Gigajoule initially signed a memorandum of understanding regarding the project in 2017. Concessions for the development and construction of the infrastructure, as well as for the design, construction and operation of the power station, were then reportedly awarded in July.

Read the article online at: https://www.lngindustry.com/liquefaction/28112019/fid-on-mozambique-lng-project-expected-in-mid-2020/

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