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Mozambique LNG



In May 2015 APTIM, Chiyoda and Saipem announced the three companies’ joint venture, CCS JV, has been selected as contractor for the initial development of the onshore LNG park in Mozambique by Anadarko Petroleum Corporation on behalf of the co-venturers in Mozambique’s offshore area.

The selection of CCS JV is subject to negotiation and entry into a definitive agreement prior to Anadarko and its co-venturers taking a Final Investment Decision (FID). The initial scope of work for the onshore LNG park includes: Two LNG trains, each with a capacity of 6 Mtpa tonnes per annum, two LNG storage tanks, one Condensate storage tank, and a multi-berth marine jetty and associated utilities and infrastructure.

FEED: APTIM and our joint venture partner, Chiyoda International Corporation (Chiyoda) were awarded a contract for the front-end engineering and design (FEED) for the onshore natural gas liquefaction facility project in an LNG park in the Cabo Delgado Province of the northern area of the Republic of Mozambique by Anadarko Moçambique Area 1 Limitada. The project has the potential to expand its capacity up to approximately 50 million metric tonnes per annum (mmtpa) of LNG in the future. The FEED will deliver designs for the initial phase of the Mozambique LNG project of four trains each with 5 mmtpa of LNG production capacity. This project is the first LNG project in Mozambique. The feed gas comes from offshore production facilities at Offshore Area 1, operated by Anadarko, and Offshore Area 4, operated by Eni.

Background: In December 2006, Anadarko, through its subsidiary Anadarko Moçambique Area 1 (Anadarko), signed an oil and natural gas Exploration and Production Concession Contract with the Government of the Republic of Mozambique for Area 1 in the Rovuma Basin, northern Mozambique. Since that time, Anadarko and ENI have safely drilled deepwater wells within the Offshore Areas 1 & 4, discovering an estimated 65+ Trillion cubic feet (Tcf) of recoverable natural gas. These massive natural gas discoveries and future world-class LNG project represents a transformational opportunity for Mozambique to become a major exporter of LNG. This activity has the potential to generate substantial revenues for the government, long-term foreign investment, infrastructure and other social improvements, as well as direct and induced employment opportunities. Anadarko and ENI are now advancing on a commercial liquefied natural gas (LNG) development that is initially expected to consist of a number of liquefaction trains, with plans for additional trains in the future.

Contracting Entity: Anadarko Moçambique Area 1, Limitada consists of Anadarko Petroleum Corporation (36.5%), Mitsui E&P Mozambique Area 1, Limited (20%), Empresa Nacional de Hidrocarbonetos (15%), BPRL Ventures Mozambique B.V. (10%), Videocon Mozambique Rovuma 1 Limited (10%) and PTT Exploration & Production Plc (8.5%). Eni is the operator of Area 4 with a 70% participating interest. The other partners of the joint venture are GalpEnergia (10%), KOGAS (10%) and ENH (10%, carried through the exploration phase).