Energy Capital & Power

Mozambique LNG: Uniting International Financiers

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In celebration of the recipient of AOP’s ‘Person of the Year Award’, H.E. President Felipe Nyusi, we are running content from the Africa Energy Series Report 2020: Mozambique, which highlights Mozambique’s gas revolution. H.E. Nyusi will receive the prestigious award at the Mozambique Gas & Power 2021 Conference & Exhibition.

Total’s Area 1 Mozambique LNG development has countered the projected slow- down in energy investment during COVID-19 by securing the largest FID in Africa to date.

A Landmark Development

With a total post-FID investment of $20 billion and $14.9 billion in project financing, Mozambique LNG represents the largest foreign direct investment in Africa to date, and a landmark development for the continent in terms of domestic LNG use and export. Following FID in June 2019, Total acquired Anadarko’s 26.5% stake in the project in September 2019 and is currently leading the project in conjunction with Mitsui & Co, ONGC, ENH, Bharat PetroResources, PTTEP and Oil India Ltd. The largest share of the senior debt financing secured for the project comes from the U.S. Export-Import Bank, which aims to support U.S. exports for the development and construction of the LNG plant, creating an estimated 16,700 American jobs over its five-year construction period. In Mozambique, Total has estimated the development to generate $50 billion in government revenue over 25 years.

Located on the Afungi Peninsula in northern Mozambique, the 13 million-ton onshore LNG facility will include two trains with a respective capacity of 6.44 million tons per year, two LNG storage tanks with respective capacity of 180,000 cubic meters, condensate storage and a multi-berth marine jetty. Natural gas feedstock for the plant will primarily be derived from the Prosperidade (Windjammer, Ironclad, Barquentine, Lagosta, Tubarao fields) and Golfinho Atum Complexes within Total-operated offshore Area 1 block, which spans 2.6 million acres in the deep-water Rovuma Basin.

The Prosperidade Complex is estimated to hold recoverable resources between 17 and 30 trillion cubic feet (Tcf) of natural gas. Development will include the installation of up to 60 subsea production wells fed into Afungi’s two-train liquefaction plant, as well as installation of three gas export pipelines, one service line and two mono-ethylene glycol lines. Meanwhile, the Golfinho-Atum Complex holds around 31.9 Tcf of natural gas resources, which will also feed the Afungi LNG plant. Development of the Golfinho-Atum Complex will consist of 20 subsea wells with horizontal trees distributed among 10 manifolds. Total has estimated both Complexes to produce two billion cubic feet (Bcf) per day, respectively, with production set to begin in 2024.

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Sihle Qekeleshe is a Web Editor at Energy Capital & Power. She has experience as a Copywriter and Editor in various industries.