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Mozambique’s gas projects enter implementation phase

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With a second FID in just 2 years, Mozambique has officially positioned itself as a key player in the global gas and LNG market for years to come.

The latest FID on the US$20 billion Mozambique LNG project, makes it the largest sanction ever in sub-Saharan Africa oil and gas. Described by Mozambique’s President, Filipe Nyusi, as “one of the most important and transformational projects in the country’s history”, Mozambique LNG is set to be a game-changer for the East African nation of 31 million people.

According to Wood Mac, from the early 2030s state revenue from Mozambique LNG alone will reach US$3 billion per year, single-handedly doubling today’s revenue as calculated by the IMF and World Bank.

And this is not the only mega-LNG project on the drawing board. ExxonMobil’s Rovuma LNG project, which envisages a 15 million tpy two-train facility taking gas from its offshore area 4 block, is also lined up to take FID. Meanwhile, Italy’s ENI is already moving ahead with its 3.4 million tpy floating LNG facility, which will draw on 5 trillion ft3 of gas in waters more than 2000 m deep with first gas due in mid-2022.

“With strong LNG demand growth out of Asia, now is Mozambique’s time,” said Jon Lawrence, an analyst with Wood Mackenzie’s sub-Saharan Africa upstream team, as news broke of the Anadarko FID.

With FIDs signed, the projects are now moving from the planning into the implementation phase. Hundreds of contracts are expected to be tendered for the construction, infrastructure and services needed to build and develop the megaprojects.

More recently, on 8 October, Mozambique Rovuma Venture (MRV) Area 4 operator decided to move ahead with the midstream and upstream project activities of over US $500 million as initial investments. These investments include activities such as the construction of the pioneer camp, the development of resettlement activities, the construction of the airstrip and access roads, as well as the start of detailed LNG facility engineering project.

Read the article online at: https://www.lngindustry.com/liquid-natural-gas/15102019/mozambiques-gas-projects-enter-implementation-phase/

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