Anadarko Petroleum Corp. and its partners hope to make a final decision by the end of 2015 on whether to proceed with a major onshore liquefied-natural-gas project in northern Mozambique.
The project, valued at $8 billion to $10 billion, has taken a step forward with the May 18 construction contract award to a joint venture of Chicago Bridge & Iron Co. N.V., the Hague; Chiyoda Corp., Yokohama; and Saipem, a subsidiary of Italian energy giant Eni.
The LNG “park” is to be located in Cabo Delgado, Mozambique’s northern province, and would have a capacity of 12 million tonnes per year.
If Anadarko and its partners make a final investment decision by Dec. 31—as the Mozambique government has suggested—the plant could produce its first LNG in 2019.
Anadarko announced the contract award after an agreement among its partners in Mozambique’s offshore Rovuma Area 1 block, which has estimated reserves of 75 trillion cu ft of natural gas.
Anadarko said that, before it and its offshore Rovuma Area 1 partners reach a final decision on the onshore LNG project, it must conclude negotiations and sign a definitive contract with CCS JV.
The LNG infrastructure was designed by Technip SA and two joint ventures: Subsea 7 (U.S.) LLC-Saipem SA and McDermott International Inc.-Allseas USA Inc. The offshore infrastructure project’s cost is estimated at $5 billion.
The onshore LNG facility is being developed jointly by Anadarko and Eni, following a successful front-end engineering and design contract awarded to Bechtel Group Inc. and two teams, JGC Corp.-Fluor Corp. and CBI-Chiyoda.
"Selecting CCS JV is a significant step toward reaching [a final investment decision] and demonstrates our continued commitment to advancing this important project toward first cargoes," Anadarko President and CEO Al Walker said in a statement.
He said the project will include two LNG trains, each with a capacity of 6 million tons per year, which is a capacity increase over the original plan of 1 million tons per year, but the cost will stay “consistent with original projections,” Walker said.
Two LNG storage tanks, each with a capacity of 180,000 cu meters, will be built, along with condensate storage, a multi-berth marine jetty, and associated utilities and infrastructure.
Anadarko holds the largest share in the offshore development, with a 26.5% stake.
Other shareholders are Mitsui, with 20%; India's ONGC (16%); Mozambique's ENH (15 %); India's Bharat Petroleum (10%); Thailand's PTTEP (8.5%); and Oil India Ltd. (4%).