Mozambique’s gas projects enter implementation phase

20181101 5 gas summit 100 CoverWith a second FID in just two years, Mozambique has officially positioned itself as a major player in the global gas and LNG market for years to come

The latest FID led by Anadarko Petroleum, on the US$20bn Mozambique LNG project, makes it the largest sanction ever in sub-Saharan Africa oil and gas.

Described by President Nyusi as “one of the most important and transformational projects in the country’s history”, Mozambique LNG is set to be a game-changer for this East African nation of 31mn people.

According to Wood Mac, from the early 2030s state revenue from Mozambique LNG alone will reach US$3bn per annum, single-handedly doubling the present revenue as calculated by the IMF and World Bank. And this is not the only mega-LNG project on the drawing board. ExxonMobil’s Rovuma LNG project, which envisages a 15mn tpa two-train facility taking gas from its offshore area 4 block, is also lined up to take FID later this year.

Meanwhile, Italy’s ENI is already moving ahead with its 3.4mn 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,” said 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.

In this context, the 6th Mozambique Gas Summit & Exhibition, in partnership with ENH, will take place on 13-14 November in Maputo. The event is the official platform to hear from important decision-makers in this fast-emerging LNG hotspot, including vital government figures, policy-makers and all the major project stakeholders who will be in attendance.

This edition is taking place at a time of exciting change including; the construction of FLNG, the progress in drilling activities in Cabo Delgado and Angoche, and the infrastructure development in Pemba Logistics Base. The event is organised with support from MIREME, INP and industry stakeholders ExxonMobil, Mozambique LNG, TechnipFMC, FNB, Sasol, and G4S.

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