Mozambican government approves plan for natural gas processing industrial zone

7 February 2018

The Mozambican government has approved the development plan of a consortium led by US oil group Anadarko Petroleum to transform the northern Afungi peninsula into an industrial zone to export natural gas, the Cabinet spokeswoman said on Tuesday in Maputo.

“The aim is to make way for the development of natural gas liquefaction, so as to economically enable the exploration of the Rovuma Basin Area 1 block” in the Indian Ocean, Ana Comoana said at the end of the Council of Ministers meeting.

Comoana said the initiative will involve different phases, including installation of undersea wells, production and control systems, assembling risers and flowlines for two natural gas liquefaction modules, as well as storage and discharge equipment with a capacity of 5.99 million tons of gas per year.

The gains expected from the execution of the project include the sale of resources with estimated revenues of US$30.7 billion by 2047, from taxes and gas profit sharing with the Mozambican state, diversification of training and technology sharing, development of support infrastructures and the involvement of national companies.

The development of infrastructures, the creation of 1,500 jobs in the drilling, construction, and operation phases was also pointed out by Ana Camoana as gains for Mozambique from the Area 1 project, whose development cost is estimated at US$12 billion.

The consortium that operates the Area 1 block consists of Anadarko Petroleum (26.5%), Japan’s Mitsui & Co (20%), India’s ONGC (16%), Mozambican state oil company ENH (15%), with smaller holdings by Indian companies, Oil India Limited (4%) and Bharat Petro Resources (10%) and Thai PTTEP (8.5%). (macauhub)