Mozambique’s Area 1 natural gas project starts in August

1 August 2019

Construction work on the processing units for the natural gas extracted in the Rovuma basin, in northern Mozambique, is due to start next Monday, the President of the Republic announced on Wednesday in Maputo.

Filipe Nyusi, who was presenting a report on the general state of the nation for this year to the country’s parliament, said he would lay the foundation stone for the project to build units to liquefy the natural gas to be extracted in the Area 1 block, “on 5 August.”

That same day US group Anadarko Petroleum Corporation will inaugurate the village where the population of Palma district that was affected by the ongoing operations in Cabo Delgado province will be relocated.

The village is made up of 556 houses equipped with a water supply system, as well as health facilities, infrastructure for teaching and sports, among others, according to the AIM news agency.

The project development plan outlines two onshore liquefaction lines with an annual production capacity of 12 million tonnes of liquefied natural gas (LNG), as well as the construction of a domestic gas supply network.

The Mozambican government and Area 1 block partners, led by the Anadarko Petroleum Corporation group, in Maputo signed the final investment decision for the liquefied natural gas project.

This is a US$25 billion investment to be funded with US$14 billion from bank funds and US$11 billion from the shareholders of the concession.

The Anadarko Petroleum Corporation in Mozambique, through its 100% controlled subsidiary Anadarko Moçambique Área 1, Ltd, operates the Rovuma Area 1 block, with 26.5%, in which its partners are ENH Rovuma Area Um, a subsidiary of Mozambican state-owned oil and gas company ENH, with 15%, Mitsui E&P Mozambique Area1 Ltd. (20%), ONGC Videsh Ltd. (10%), Beas Rovuma Energy Mozambique Limited (10%), BPRL Ventures Mozambique BV (10%), and PTTEP Mozambique Area 1 Limited (8.5%). (Macauhub)