Anadarko-led consortium will now have to sign enough sales and purchase agreements prior to making final investment decision for the project.
The Area 1 gas project involves installation of underwater wells as well as equipment to carry gas to liquefaction facilities. It also involves construction of storage facility with a capacity of 5.99 million tons a year.
Mozambique Council of Ministers spokeswoman Ana Comoana said was quoted by Reuters as saying: “The government has approved the resolution for the development plan for the Rovuma Basin Area 1 project to be implemented by Anadarko.
“Mozambique stands to amass $30.7bn until 2047 from taxes and profit-sharing generated from the exploitation of natural gas.”
The liquefied natural-gas project estimated to see an investment of $20bn.
Anadarko is also planning to build a liquefied natural-gas plant, for which it is currently working to resettle communities from the land, reported Bloomberg.
The Offshore Area 1 project is expected to supply approximately 100 million cubic feet of natural gas a day (MMcfd) to the onshore LNG facility.
Featuring two initial LNG trains with a total capacity of 12 million tons per annum (MTPA), the LNG plant will support the Golfinho/Atum field located entirely within Offshore Area 1.
Anadarko operates the Offshore Area 1 project with 26.5% stake while other partners include Empresa Nacional de Hidrocarbonetos (ENH) with 15% interest and Mitsui E&P Mozambique Area1 with 20% stake.
The partners in the project also include ONGC Videsh with 16% share, Bharat PetroResources with 10% interest, PTT Exploration & Production with 8.5% stake and Oil India with 4% stake.
According to estimates, the gas field holds approximately 75 trillion cubic feet (Tcf) of recoverable natural gas.
