Mocímboa da Praia, Mozambique, 13 June – US oil group Anadarko Petroleum plans to put forward a proposal to the Mozambican government to build a liquid natural gas processing unit in the far north of the country, according to Mozambican news agency AIM.
The block in the Rovuma basin near the border with Tanzania, which was granted to the group, covers areas both on land and in the sea in the districts of Palma and Mocímboa da Praia, in Cabo Delgado province, and Anadarko discovered large deposits of natural gas in four of its seven test wells.
The group has invested US$750 million in the Rovuma basin, which is expected to rise to US$3 billion by the end of 2013 and may become the largest investment ever made if the project to build a liquid natural gas processing unit goes ahead.
John Peffer, chief executive of Anadarko Petroleum in Mozambique, said that the natural gas processing unit, which would be able to process 1 billion cubic feet (around 28.2 million cubic metres) of gas per day, was essential as only then can the necessary economy of scale be achieved for exploration of the natural gas fields that are at a depth of 1,500 metres and 40 kilometres off the coast.
The gas processing unit would be built on the coast of Cabo Delgado province where the natural gas will be turned to liquid at a temperature of minus 162 degree Celsius.
Over the next few years Anadarko plans to continue with its programme of test drilling in order to establish the size of the gas reserves. Peffer also said that the company had not given up hope of finding oil.
Anadarko Petroleum found oil in one of its test wells but it was not commercially viable. (macauhub)