PTT expects Final Investment Decision in early 2019 – Mozambique

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PTT expects Final Investment Decision in early 2019 – Mozambique

3:09 CAT | 01 Feb 2019

File photo: Lusa

The Thai hydrocarbon company PTT is looking to advance its final investment decisions (FID) on all of its projects according to the online journal Upstream.

In particular, the journal notes that PTT’s chief executive Phongsthorn Thavisin said on Wednesday that the company expects to take the FID on its liquefied natural gas (LNG) project in northern Mozambique in the first half of 2019.

PTT is a partner in a consortium to develop Offshore Area One, off the coast of Cabo Delgado province, which is estimated to hold 75 trillion cubic metres of recoverable natural gas. The project’s operator is the US company Anadarko, which plans to pipe the gas to the Afungi Peninsula, in Palma district, where it will be turned into liquefied natural gas (LNG).

The Anadarko project will be Mozambique’s first onshore LNG development. It will initially consist of two LNG factories (known as “trains”) with the capacity to produce 12.88 million tonnes of LNG per year. Anadarko plans to expand the project in stages up to a maximum of 50 million tonnes a year. In addition, Area One will supply 100 million cubic feet of natural gas per day for domestic use in Mozambique.

According to PTT, the project is expected to commence LNG production in 2024. However, this will not be the first project to produce LNG from the Rovuma Area. The consortium operating Offshore Area Four of the basin, headed by the Italian energy company ENI, has opted to build a floating LNG unit that will sit on a platform above the Coral South Field, and it is expected to produce its first LNG by 2022.

Anadarko holds a 26.5 per cent stake in Area One. Its partners in the consortium are Mitsui of Japan (20 per cent), the Indian companies ONG Videsh, Beas Rovuma Energy, and BRPL Ventures Mozambique (each with 10 per cent), PTTEP of Thailand (8.5 per cent), and Mozambique’s own National Hydrocarbon Company (ENH), with the remaining 15 per cent.

Source: AIM