Name of the Project
Mozambique 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 TotalEnergies, 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 (tcf) 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.
A total of 18 tcf 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
The British government's funding of up to $1.15-billion for the Area 1 project has been declared lawful by a London court, dismissing an appeal by environmental campaign group Friends of the Earth. The organisation’s legal action over the decision failed in a lower court on January 13, 2023, and was dismissed by the Court of Appeal in a written ruling.
The environmental campaign group had asked London's Court of Appeal to rule that the British government had wrongly decided to fund the project, in contravention of the Paris Agreement on climate change.
UK Export Finance (UKEF) has committed to provide direct loans and guarantees for banks to support the design, build and operation of the $20-billion project.
Judge Geoffrey Vos said in his ruling that the Paris Agreement is "only one of a range of factors" UKEF took into account when reaching the decision to fund the project.
The judge added that UKEF's view that funding the project was aligned with the UK's obligations under the Paris Agreement was "tenable" and that there was no requirement for it to be "certain that the decision complied with those obligations".
Friends of the Earth described the ruling as "extremely disappointing" and is considering an appeal to the UK Supreme Court.
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.