africa Economy Energy Finance Gas Mozambique

Natural gas exploration in Mozambique presses on resolutely

Approximate reading time: 2 minutes

The natural gas extraction and liquefaction industry in Mozambique appears to have been launched, after many years of delays and deliberations, according to the China-Lusophone Brief (CLBrief), a news service on China and the Portuguese-speaking countries.

Consortiums led by Italy’s ENI and the US ExxonMobil group in the Area 4 block and US-based Anadarko Petroleum in the Area 1 block are investing billions of dollars in projects, the first of which is already announced for 2023, with the floating platform that will extract and process the gas already under construction at a South Korean shipyard, Samsung Heavy Industries.

The project led by Anadarko has as its most recent customer Japan’s Tohoku Electric, which last October agreed to purchase up to 280,000 tons of gas per year for a period of 15 years, and in June a larger agreement was reached with the UK’s Centrica and Japan’s Tokyo Gas to supply 2.6 million tons over a period of more than 20 years.

Once enough of the project’s future production has been sold, the consortium will begin to build the first two gas processing plants, with the development plan already approved by the Mozambican government and the final investment decision expected to be made in the first half of 2019.

The project of the Area 1 block is operated by the Anadarko group through Anadarko Moçambique Área 1, Ltd, a 100% controlled subsidiary, with a 26.5% stake, ENH Rovuma Área Um, a subsidiary of state-owned Empresa Nacional de Hidrocarbonetos (ENH), with 15%, Mitsui E & P Mozambique Area1 Ltd. (20%), ONGC Videsh Ltd. (10%), Beas Rovuma Energy Mozambique Limited (10%), BPRL Ventures Mozambique B.V. (10%), and PTTEP Mozambique Area 1 Limited (8.5%).

The Area 4 block’s participants are the Mozambique Rovuma Ventures, a partnership owned by the ExxonMobil, ENI and the China National Petroleum Corporation groups, which jointly control 70%, with the remaining 30% divided equally between Portuguese group Galp Energia, South Korea’s Kogas and Mozambican state-owned Empresa Nacional de Hidrocarbonetos (ENH).

Source: Macauhub

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