With a second final investment choice (FID) in just two years, Mozambique has formally positioned itself as a major player in the global gas and LNG market for years to come. The latest FID on the US$20 billion Mozambique LNG project makes it the biggest sanction ever in sub-Saharan Africa oil and gas.
Characterized by President Nyusi as “one of the most significant and transformational projects in the country’s history”, Mozambique LNG is set to be a game-changer for this East African nation of 31 million folk.
The president added: “This is a historic day for the people of Mozambique. Today’s sanctioning of the Anadarko-led Area 1 Mozambique LNG project solidifies a route toward the formation of thousands of jobs for our people, crucial economic growth for our nation, and the potential to be one of the world’s largest providers of cleaner energy for decades to come. It is honestly one of the most significant and transformational projects in our country’s history.”
Anadarko’s Chairman and CEO, Al Walker, said: “This is an astonishing day for Mozambique and for our partnership, bringing us a footstep closer to making Mozambique’s first onshore LNG facility a reality.
As the world increasingly seeks cleaner forms of energy, the Anadarko-led Area 1 Mozambique LNG project is correctly based to meet growing demand, especially in expanding Asian and European markets. We look ahead to safely executing the next chapter of this project for the long-term aid of Mozambique, its people, our partnership, and our customers.”
According to Wood Mac, from the early 2030s state income from Mozambique LNG alone will reach US$3 billion per annum, single-handedly doubling today’s gains as calculated by the IMF and World Bank. ExxonMobil’s Rovuma LNG project, which envisages a 15 million tons per annum (tpa) two-train facility taking gas from its offshore area 4 block, is also lined up to take FID.
With FIDs signed, the projects are now stirring from the planning into the fulfillment phase. Hundreds of contracts are expected to be tendered for the construction, infrastructure and assistance needed to build and develop the megaprojects.