Total concluded the acquisition of Anadarko’s 26.5% interest in the Mozambique LNG project for $3.9bn (R57,64bn) in September as part of its takeover of Anadarko’s Africa assets that included projects in Ghana and Algeria.Reuters reported that the French company aims to expand its Mozambique liquefied natural gas (LNG) project with two additional trains, or plants, where the gas is super-chilled for easier transport, a company executive said on Tuesday.
“We’re starting to look at studies for train 3 and train 4, because the resources are clearly there to develop,” Mike Sangster, head of Total exploration and production for Nigeria, told an oil conference in Cape Town.
The French company noted that risk on Mozambique LNG had been largely covered by the sale of long-term contracts with buyers in Asia and Europe. There are also plans for some gas supplies to go for local consumption.
Total’s Mozambique LNG project
Mozambique LNG is the country’s first onshore LNG development. The project includes the development of the Golfinho and Atum fields located within Offshore Area 1 and the construction of a two-trains liquefaction plant with a capacity of 12.9 million tonnes per year (Mt/y).
The Area 1 contains more than 60 Tcf of gas resources, of which 18 Tcf will be developed with the first two trains. The Final Investment Decision (FID) on Mozambique LNG was announced on June 18, 2019, and the project is expected to come into production by 2024.
The Mozambique LNG project is largely derisked since almost 90% of the production is already sold through long-term contracts with key LNG buyers in Asia and in Europe.
Additionally, the project is expected to have a domestic gas component for in-country consumption to help fuel future economic development.
Total operates Mozambique LNG with a 26.5% participating interest alongside ENH Rovuma Área Um, S.A. (15%), Mitsui E&P Mozambique Area1 Ltd. (20%), ONGC Videsh Ltd. (10%), Beas Rovuma Energy Mozambique Limited (10%), BPRL Ventures Mozambique B.V. (10%), and PTTEP Mozambique Area 1 Limited (8.5%).