Name of the Project
Area 1 liquefied natural gas (LNG) facility.
Location
The project proposes to develop an LNG facility on the Afungi peninsula in Cabo Delgado province, in Mozambique.
Project Owner/s
Total E&P Mozambique Area 1 Limitada, a wholly owned subsidiary of Total, operates Mozambique LNG with a 26.5% participating interest alongside ENH Rovuma Área Um (15%), Mitsui E&P Mozambique Area1 Limited (20%), ONGC Videsh Rovuma Limited (10%), Beas Rovuma Energy Mozambique Limited (10%), BPRL Ventures Mozambique (10%), and PTTEP Mozambique Area 1 Limited (8.5%).
Project Description
Offshore Area 1 contains about 65-trillion cubic feet of recoverable natural gas.
The project involves the development of Mozambique’s first onshore LNG facility, comprising two initial LNG trains, with a total nameplate capacity of 13.1-million tonnes a year to support the development of the Golfinho/Atum field, located entirely within Offshore Area 1.
Eighteen-trillion cubic feet will be developed in the first two phases.
The project has scope to increase production to 50-million tons.
Gas from the Anadarko-operated offshore field will be sent to an onshore processing plant, where it will be liquefied and then exported.
Potential Job Creation
Area 1 has about 5 000 workers on site, progressing works associated with the construction of a resettlement village, camp expansion, an airstrip and the Palma-Afungi highway.
Capital Expenditure
$25-billion. The project will be funded with $11-billion of equity and $14-billion of debt.
Planned Start/End Date
A final investment decision was announced in June 2019, and production is expected by 2024.
Latest Developments
Total, which is leading the development of the LNG megaproject, has signed a new security-related memorandum of understanding (MoU) with the Mozambique government.
Mozambique is facing an increasingly assertive insurgency in the Cabo Delgado province, where the Mozambique Area 1 LNG project is based.
Earlier this month, fighters, who are said to have links with the Islamic State of Iraq and the Levant, captured Mocimboa da Praia, located about 60 km south of the site where the gas project is being developed and where there have been ongoing attacks in the region since 2017.
Total has said that the MoU provides for a joint task force to ensure the security of project activities at the Afungi site and across the broader area of operations of the project.
Total has detailed what such support will entail.
It has indicated that government is committed to ensuring that the joint task force acts according to the Voluntary Principles on Security and Human Rights.
Mineral Resources and Energy Minister Ernesto Max Elias Tonela has said that the MoU bolsters security measures and that government will endeavour to create a safe operating environment for ongoing investment in Mozambique.
Total has said that the MoU demonstrates the project’s commitment to meeting its milestones in a secure manner while creating local opportunities and bringing meaningful social and economic benefits for the province of Cabo Delgado and the country.
Total in Mozambique country chair Ronan Bescond has said that Total and the government of Mozambique are committed to allowing for steady progress towards the successful delivery of the project.
“In view of the security situation in the Province of Cabo Delgado, our priority is to ensure the security of our workforce, many of whom are residing in neighbouring communities, and of the project operations,” Bescond has said.
Key Contracts, Suppliers and Consultants
TechnipFMC, through its subsidiary FMC Technologies (subsea trees, completion workover riser and installation workover control system, subsea controls system, subsea connectors and production manifolds); TechnipFMC, through its subsidiary Technip Mozambique and Oceaneering International (aftermarket services in Mozambique); Oceaneering International (subsea umbilicals and distribution hardware); Advanced Technology (pipeline subsea ball and subsea gate valves); Cameron Italy (subsea chemical injection metering valves engineering, procurement, construction and installation (EPCI) for the offshore subsea system); TechnipFMC and VanOord (EPCI of the offshore subsea system, engineering, procurement and construction (EPC) for the LNG facility and support facilities); and McDermott, Chiyoda and Saipem EPC contracts for the Mozambique LNG liquefaction facility and support facilities).
Contact Details for Project Information
Total E&P Mozambique Area 1 Limitada, tel +258 21 500 000 or email tepma1.communication@total.com.