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Gas Project Could Double Mozambique’s GDP


Mozambique natural gas
Mozambique has huge amounts of natural gas

The Texas-based Anadarko Petroleum Corporation has revealed that it could be looking at producing 50 million tonnes of liquefied natural gas per annum from its concession in the Rovuma Basin, off the coast of the northern Mozambican province of Cabo Delgado.

Its spokesperson John Christiansen told reporters “we have a tremendous discovery in Mozambique.

When you look at all the resources that we have found in Offshore Area 1, it is approaching 100 trillion cubic feet of total gas in place with recoverable resources of between 35 and 65 trillion cubic feet”.

The company is focusing its initial development on building two liquefied natural gas (LNG) trains, each capable of processing five million tonnes of LNG a year, which can then be shipped to market.

However, Christiansen says that the resources are there to justify ten trains, producing 50 million tonnes of gas per year in future years.

In the first phase the company and its partners will be investing about 15 billion US dollars in Mozambique, which includes the offshore development and the LNG facilities on land. It aims to be producing the first gas for market in 2018.

The company will be developing its discoveries in the Golfinho/Atum complex which has between 15 and 35 trillion cubic feet of recoverable gas, and the Prosperidade complex which holds an estimated 17 to 30 trillion cubic feet of recoverable gas.

Prosperidade is situated to the south of Golfinho/Atum, and spans the boundary with Offshore Area 4, which is being operated by the Italian company ENI.

According to Christiansen, Anadarko is in discussion with the Mozambican government and ENI over the potential for joint development of these resources.

Anadarko is currently drilling the Perola Negra (Black Pearl) prospect near the southern end of the Offshore Area 1 Block, with plans to also drill the identified Linguado and Orca prospects later this year or early in 2013.

Currently Anadarko employs about a thousand Mozambicans, and this number could easily grow to ten thousand during the construction phase. In addition there will be countless ancillary job opportunities.

Christiansen characterised the project as a transformational opportunity for Mozambique in terms of revenue and jobs. He stressed that if the company produced 50 million tonnes per year it would make Mozambique the third largest exporter of LNG after Qatar and Australia, and the income from the project would equal or surpass the country’s current Gross National Product.

He stressed the importance of moving the project forward so that it is online in 2018, as this will be when the country begins to benefit from the project’s revenue.

Anadarko is the operator of Offshore Area 1 and holds a 36.5 per cent share of the fields. Its co-owners are Mitsui of Japan (20 per cent), BPRL Ventures and Videocon (both of India, with 10 per cent each) and the Thai state oil company PTTEP (8.5 per cent). The Mozambican government is represented by Empresa Nacional de Hidrocarbonetos (ENH, National Hydrocarbon Company) which holds a 15 per cent interest in the fields.

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