APA-Maputo (Mozambique) The Chief Executive Officer of Mozambique’s National Hydrocarbons Company (ENH), Omar Mitha, has predicted that $50 billion of investment will be pledged for the hydrocarbon sector next year, when final investment decisions are made by the operators of Offshore Areas One and Four, Anadarko and ENI respectively.
“This will be one of the largest investments in Africa for which the Texas based company Anadarko is working towards taking its final investment decision for the construction of a facility with two factories (known as trains) capable of producing a total of 12.88 million tonnes of liquefied natural gas (LNG) per year", Mitha told a conference in Maputo on Thursday.
According to the official, the U.S. oil and gas producer Anadarko Petroleum Corp has said it expects to finalize its sales and financing agreements in order to make a final investment decision in the first half of 2019 to build the first liquefied natural gas export terminal in Mozambique. "Anadarkosaid it was ready to move forward with the Mozambique project after lining up enough customers for the LNG", Mitha added.
The capital expenditure that will be attached to these final investment decisions will be spread over several years as Anadarko has penciled in 2023/24 for the start of production, whilst Italy's ENI is looking at 2024. It should also be noted that the vast majority of this expenditure will be spent outside of Mozambique where the LNG facilities will be designed and manufactured. ENI has already taken its financial investment decision to develop a floating liquefied natural gas (FLNG) project in Area Four. The FLNG platform is to start production in 2022, with a capacity of 3.4 million tonnes of LNG a year. Mitha pointed out that there are seven blocks where hydrocarbon research and production are underway. Four are in the Mozambique Basin and three in the Rovuma Basin at the border with Tanzania. Mozambique is desperate to plug gaps in government revenue from its natural resource-rich northern region where multinational giants such as Anadarko and Italy’s ENI are exploring. The basin boasts reserves of around 180 trillion cubic feet and experts say the reserves are enough to supply energy to Britain, France, Germany and Italy for over 20 years.
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