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 (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
Mozambique LNG Area 1 project and financial organisation the African Development Bank (AfDB) have jointly received the Global Multilateral Deal of the Year 2020 award from print and online publication Project Finance International (PFI).

The project, the single-biggest foreign direct investment in Africa to date, with a value of more than $24-billion, will target Mozambique’s offshore natural gas reserves.

The AfDB signed an agreement in July 2020 for a $400-million senior loan to finance the project.

In signing the loan agreement, the AfDB joined a global syndication of commercial banks and export credit agencies that are providing financing, which includes direct loans and export credit agency-covered loans with 16- and 18-year tenors.

The project is implemented by an international consortium of energy developers and operators, led by Total as the operator of the project. The consortium is providing the balance of financing through equity.

Financial close on the project is expected this year.

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.