Untangling the web of who owns whom and who is doing what in the Mozambican LNG projects in the north of the country is made difficult by the secrecy under which the oil companies seem to operate, as well as shifting alliances, mergers and sales of shares. So much so that there is scepticism among many Mozambicans over whether the projects are actually going to start. South African companies are also said to be hanging back. They may well lose out. Mozambique’s gas fields are thought to be among the biggest remaining resources in the world, with enough gas to keep producing for 40 years, or 125 trillion cubic feet (TCF). Gas is seen as a green alternative to coal, and demand is growing as the world wakes up to the reality of global warming. Already on the ground is Sasol, which has a natural gas processing facility in Inhambane Province, which holds proven reserves of 2.6 TCF. The gas is processed in Temane and then transported via an 865 km pipeline to Secunda, with a link to southern Mozambique for domestic use. Sasol has announced plans to develop an integrated oil and liquefied petroleum gas project adjacent to its existing petroleum facility. The project includes 13 wells and an LPG production facility at an estimated cost of US$1.4 billion. Sasol has been awarded licences to explore an area of over 3 000km2 in southern Mozambique, and is also part of a successful bid to explore an area of 5 145km2 further north in the Angoche Basin. Work has started on two projects in the north – one landbased, and the other a floating platform. The Area 4 block is operated by the Mozambique Rovuma Venture consortium, which brings together Exxon Mobil and Italian company ENI, both with 25%. The remaining shares are held by stateowned China National Oil and Gas Exploration and Development Company (CNODC) at 20%, with the remaining 30% split equally between South Korean groups Kogas, Portugal’s Galp Energia and the Mozambican stateowned Empresa Nacional de Hidrocarbonetos (ENH). Two projects are under way in Area 4. The Coral South FNG project is led by Eni, and work has started on the construction of the floating platform, which will produce 3.4 million tons (mtpa) of liquefied gas a year. The land-based Rovuma LNG Mamba project is being led by Eni and ExxonMobil. Eni is responsible for upstream operations and ExxonMobil for the building and operation of onshore facilities capable of producing over 15 million tons of LNG a year. Situated in the Afungi peninsula, the site was chosen because it has natural deep-water access. Construction of onshore facilities has been awarded to a consortium led by Japan’s JGC, UK firm TechnipFMC and US company Fluor Corp. Final investment decisions, a term used by the oil industry to mean the commercial and regulatory aspects of a project are finalised, will be made in 2020. The site is adjacent to one being developed by Anadarko (will be Total SA). The 12.88 mtpa US$20 billion project is a joint venture which includes ENH Rovuma Área Ume, SA (15%), Mitsui E&P Mozambique Area1 Ltd. (20%), ONGC Videsh Ltd. (10%), Beas Rovuma Energy Mozambique Limited (10%), BPRL Ventures Mozambique BV (10%t) and PTTEP Mozambique Area 1 Limited (8.5%). Preparatory work has started for the site. A partner in all the projects is the state-owned Empresa Nacional de Hidrocarbonetos (ENH). The law stipulates that ENH participate as a stakeholder in petroleum production operations, as well as exploration projects. ENH is also engaged in other projects, such as an oil and gas terminal expansion in the port of Pemba, and the urbanization of the district of Palma, where the Area 1 and 4 natural gas business activities will be concentrated. In partnership with the Korean gas company Kogas, ENH will distribute gas to households and industry in the south of Mozambique with piped gas.
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