9 January 2013

Mozambique: Engineering Contract for Liquefied Natural Gas

Maputo — The Fluor Corporation of Texas and the JGC Corporation of Japan have announced the formation of a joint venture that has been awarded the engineering contract to build a liquefied natural gas (LNG) complex in the northern Mozambican province of Cabo Delgado.

The Fluor/JGC consortium has been awarded the front-end engineering and design (FEED) contract by Anadarko Mocambique Area 1 Ltd. This is one of the companies that has discovered vast reserves of natural gas in the Rovuma Basin, off the Cabo Delgado coast.

Anadarko Moçambique Area 1, Ltd consists of the US Anadarko Petroleum Corporation (the operator, with 36.5 per cent of the shares), Mitsui of Japan (20 per cent), Mozambique’s own National Hydrocarbon Company (ENH, with 15 per cent), the two Indian companies BPRL Ventures and Videocon Mozambique (10 per cent each) and PTT Exploration & Production of Thailand (8.5 percent).

According to a statement from Fluor, the FEED contract will deliver designs for the initial phase of the Mozambique LNG project of four liquefaction and purification facilities, known as “trains”. Each train will be capable of producing five million metric tonnes per yearof liquefied natural gas.

The statement adds that the project has the potential to expand its capacity up to approximately 50 million tonnes a year of LNG in the future.

The feedstock for the trains will come not only from Rovuma Basin Area One, operated by Anadarko, but also from Area Four, operated by the Italian company ENI. It is expected that the first production of LNG will occur in 2018.

“In the region, this is an important and strategic win for both joint venture parent companies,” said Peter Oosterveer, president of Fluor’s Energy and Chemicals Group. “We brought together a talented and experienced team that leverages the combined strengths of JGC’s industry-leading LNG experience with Fluor’s 50-plus year reputation for executing large complex projects in sub-Saharan Africa.”

The recent discoveries in Areas One and Four indicate the existence of over 100 trillion cubic feet of natural gas in the Rovuma Basin – enough to raise Mozambique to the ranks of the world’s major gas producers.

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