The investments due to be made in the exploration of natural gas are a “giant step” towards raising more revenue for the state and boosting the national economy, said the President of Mozambique on Monday in Palma.
Filipe Nyusi, speaking at the ceremony to lay the foundation stone of Mozambique LNG’s natural gas processing unit, also said that the project led by the Anadarko Petroleum Corporation group, “will catapult Mozambique’s economy on regional, continental and global levels.”
“With the implementation of this facility, whose first stone we had the privilege to lay, a new page in the history of Afungi, Cabo Delgado, Mozambique and Africa has been turned,” said the president, adding that “this project irrefutably defines Mozambique as a destination for foreign direct investment.”
The unit is estimated to cost US$150 million and will have the capacity to produce 12.8 million tonnes of liquefied natural gas per year, of which 11.1 million tonnes per year have already been sold to European and Asian buyers.
The Mozambican government and Area 1 block partners, led by the Anadarko Petroleum Corporation group, signed the final investment decision for the liquefied natural gas project in Maputo.
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 Rovuma Basin Area 1 block is operated by the Anadarko Petroleum Corporation group through its wholly-owned subsidiary Anadarko Mozambique Area 1, Ltd, with 26.5%, which is partnered by ENH Rovuma Área Um, a subsidiary of state company 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%). (Macauhub)