Mozambique’s dormant
gas industry has been
reignited by the signing of
a US$7-billion concession
contract by a consortium headed
by multinational oil and gas
companies ENI and Anadarko
along with the Mozambican
government for a Liquefied Natural
Gas (LNG) Maritime Terminal in
Areas 1 and 4 of the
Rovuma Basin.
The two projects
will require
extensive logistics
support.
The signing
“follows the
approval by
the Council of
Ministers and
publication of
Decrees 36/2017
and 37/2017, both
of July 21, which
approves the terms
and conditions of the Concession
Agreements of the installations
to be used to unload construction
materials and the LNG Maritime
Terminal,” according to a media
release.
The LNG Maritime Terminal
and a facility for the unloading
of materials for the construction
of the LNG plants will be
operated by two new companies
– the Mozambique LNG Marine
Terminal Company, and the
Sociedade Mozambique MOF.
Both facilities will be situated in
the northern Palma district.
Anadarko and Eni would share
the facilities,
government
spokesperson and
deputy minister of
culture and tourism
Ana Comoana told
a media briefing.
A number of
Mozambican
logistics companies
have established
a presence in the
north of the country
ahead of the
expected rollout of
the gas projects.
Many of the offices have been
working at way below capacity for
some time as development came
to a halt with the fall in the oil and
prices from 2014.
The ENI consortium will
develop a floating LNG production
platform project for the Rovuma
Basin Area 1 concession, while
Anadarko is a concessionaire of
Area 4, located in the same region.
BP Plc has a 20-year contract to
buy all LNG production from the
Coral South plant, which is being
developed by Eni in collaboration
with Galp Energia SGPS SA,
Korea Gas Corp and Mozambique’s
state-owned Empresa Nacional de
Hidrocarbonetos.
Anadarko is developing
Mozambique’s first onshore LNG
plant consisting of two initial LNG
trains with a total capacity of 12
million tons per annum (MTPA).
Feedstock will come from Area 1.
Andarko and Eni have have
identified natural gas reserves
amounting to 200 trillion cubic
feet in the Rovuma Basin.
Eni and the Mozambican
government agreed in June 2017
on the financing and regulatory
framework for the Coral South
Project.
Contracts for the subsea
production systems, EPC
installation and offshore drill
ships have been awarded by Eni,
according to the company.
INSERT
A number of
Mozambican logistics
companies have
established a presence
in the north of the
country ahead of the
expected rollout of the
gas projects.