Mozambique Shoots Into Global LNG Market With New FID
Mozambique shot into the global oil and gas limelight with the announcement of its second Final Investment Decision (FID) on the $20billion Mozambique LNG project, in just two years.
The development has officially positioned the country as a key player in the global gas and LNG market in the years to come.
A statement by the African Petroleum Organisation (APO) yesterday said the new FID makes it the largest sanction ever in sub-Saharan Africa oil and gas. It quoted the country’s President, Filipe Nyusi, saying the LNG is “one of the most important and transformational projects in the country’s history”,
Quoting Wood Mackenzie, is a global energy, chemicals, renewable, research and consultancy group with global international reputation, the statement said from the early 2030s, state revenue from Mozambique LNG alone will reach $3billion per annum, single-handedly doubling today’s revenue as calculated by the IMF and the World Bank.
“And this is not the only mega-LNG project on the drawing board. ExxonMobil’s Rovuma LNG project, which envisages a 15 million tpa two-train facility taking gas from its offshore area 4 block, is also lined up to take FID,” APO noted
It said that Italy’s ENI is already moving ahead with its 3.4 million tpa floating LNG facility, which will draw on 5 TCF of gas in waters more than 2,000 metres deep with first gas due in mid-2022. “With strong LNG demand growth out of Asia, now is Mozambique’s time,” APO quoted Jon Lawrence, an analyst with Wood Mackenzie’s sub-Saharan Africa upstream team, as news broke of the Anadarko FID.
With FIDs signed, the projects are now moving from the planning into the implementation phase. Hundreds of contracts are expected to be tendered for the construction, infrastructure and services needed to build and develop the megaprojects. More recently, on October 8th, Mozambique Rovuma Venture (MRV) Area 4 operator decided to move ahead with the midstream and upstream project activities of over $500 million as initial investments. These investments include activities such as the construction of the pioneer camp, the development of resettlement activities, the construction of the airstrip and access roads, as well as the start of detailed LNG facility engineering project.
“It makes this the ideal time to participate at the 6th Mozambique Gas Summit & Exhibition, in partnership with ENH, taking place on 13-14 November in Maputo,” APO said. The event is the official platform to hear from key decision-makers in this fast-emerging LNG hotspot, including key government figures, policy-makers and all the major project stakeholders who will be in attendance.