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Freight & Trading Weekly

Gas moves off the slow burn

11 Oct 2017 - by Ed Richardson
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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.

 

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