Mozambique: Rovuma gas will attract about US$60 billion – Omar Mithá

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Mozambique: Rovuma gas will attract about US$60 billion – Omar Mithá

12:47 CAT | 29 May 2018

About US$60 billion will be spent building platforms and other support infrastructures for the production of liquefied natural gas (LNG) in areas 1 and 4 of the Rovuma basin, Omar Mithá, PCA of Empresa Nacional de Hidrocarbonetos (ENH) said in a speech marking the 13th anniversary of the newspaper O País.

At the moment, the consortium led by Italy’s Eni is investing US$8 billion in the “Coral South” project in Area 4, whose final investment decision came out in 2017. ENH, the state arm of the hydrocarbon exploration project , is expected to pay US$800 million for its 10 percent stake in the project.

Also in Area 4, the North American company Exxon Mobil, listed as the largest oil company in the world, is designing the technological and financial project for the “Mamba” complex, which will consist of two onshore gas liquefaction units. The final investment decision for this project has not yet been made, but projections point to an investment of more than US$ 25 billion. The high cost of investment has to do with the quantities of gas in the “Mamba” complex, estimated at around 50 billion cubic feet.

The government told parliament two weeks ago that it expected to start discussions with Exxon Mobil on the development plan for this project later this year, and that the final investment decision would be made in 2019.

Mithá said that the Area 1 final investment decision would be made at the end of the year or beginning of 2019, after the approval of the development plan by the Council of Ministers in January. Operated by US-based Anadarko, this project will be developed onshore, where two LNG plants will be built with the capacity to produce 12 million tons of gas per year.

The concessionaires are expected to invest around US$25 billion, and Mithá guarantees that the project is well underway, with medium and long-term sales contracts expected to exceed millions of tons per year.

“We are talking about investments of over US$50 billion, plus the US$8 billion already approved for the Coral South project. These projects are unprecedented across sub-Saharan Africa. They are structural transformation projects,” the ENH chairman said, adding that the use of domestic gas for the development of the chemical industry would result in more investments in Palma, the district that hosts the Rovuma gas projects.

Source: O País