68 US Companies Get Federal Support to Supply Mozambique LNG Project
At least 68 U.S. companies have been identified to supply equipment and services for engineering, procurement and construction of a $23-billion two-train liquefied natural gas processing plant project in Mozambique.
Firms from Florida, Georgia, Louisiana, New York, Oklahoma, Pennsylvania, Tennessee, Texas and the District of Columbia will deliver exports of equipment and services worth $1.8 billion with financing from the U.S. Export-Import Bank that is part of $4.7 billion the bank approved to support U.S. businesses supplying the project, Mozambique LNGt.
“This project continues to serve as a great example of how a revitalized [Export-Import Bank] can help ‘Made in the USA’ products and services compete in a fierce global marketplace and counter competition from countries like China and Russia,” said bank President and Chairman Kimberly A. Reed.
Mozambique LNG was previously owned by U.S. energy firm Anadarko Petroleum Corp. and its partners in the Mozambique Area 1 concession before the asset was acquired by Total Exploration and Production Area, Limitada, a wholly owned subsidiary of French oil giant Total SA, for $3.9 billion.
The 13.1 tonnes/year capacity liquefaction project, located on the Afungi Peninsula in northern Mozambique, will be constructed by a joint venture of Saipem, Chiyoda and McDermott that had previously been awarded the EPC contract by the project’s developer Mozambique LNG Lt., which is 26.5% owned by Total Exploration and Production Area, Limitada.
Australia-based Worley will provide in-country and outside services, including engineering, consulting and specialist engineering for delivery of onshore and offshore (subsea) facilities.
Mozambique Area 1 has more than 60 trillion cubic feet (tcf) of natural gas reserves with the LNG project expected to develop an initial 18tcf by 2024.
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The Export-Import Bank signed initial documents relating to a board-authorized direct loan to support the liquefaction plant that will supply LNG to Asia-Pacific markets such as China, Korea, Japan and India.
Some equipment for the LNG project includes steel pipes, seabed manifold systems, gas pipelines, gas cooling systems, non-pressurized tanks and insulated gas pipes.
Eight export credit agencies, 19 commercial banks and the African Development Bank are providing financing for the project, which is the first onshore LNG development in Mozambique that includes development of the Golfinho and Atum natural gas fields in the offshore Area 1 concession.
Other shareholders include ENH Rovuma Area UM (15%); Mitsui E&P Mozambique Area 1 Ltd (20%); ONGC Videsh Rovuma Ltd (10%); Beas Rovuma Energy Mozambique Ltd (10%); BPRL Ventures Mozambique B.V (10%); and PTTEP Mozambique Area 1 Ltd (8.5%).
