What is the vision for Mozambique LNG?
To date, Anadarko has discovered 50-75+ Tcf of gross recoverable resources on our block and are working with the participants in Area 1 and the Government of Mozambique to target bringing the initial train to market in the 2019 timeframe, with more than 8 MMTPA of non-binding LNG offtake agreements already in place.
When does Anadarko expect to make a final investment decision (FID) on the project?
Our primary focus is on achieving first cargoes as safely and quickly as possible, and we have made great progress in advancing this LNG project:
- We’ve secured an agreement with the Government of Mozambique for the land where the onshore LNG park will be located.
- After a competitive Front End Engineering Design (FEED) process, we selected a consortium consisting of CB&I, Chiyoda and Saipem (CCS JV) for the initial development of the onshore LNG park.
- We expect to select a contractor for the offshore gathering system later this year, following a competitive FEED process.
- We’ve obtained approval for the Environmental Impact Assessment.
- We’ve independently certified reserves.
- We’ve taken comprehensive actions to prepare for operations, through local recruitment and training, site preparation work and improvements to the local infrastructure.
- We recently signed a Memorandum of Understanding (MOU) with Mozambique’s Ministry of Land Environmental and Rural Development (MITADER), which defines the principles for the Resettlement Action Plan.
- We have received more than 60 percent of funding indications for project financing.
- We have secured more than 8 MMTPA of non-binding Heads of Agreement (HOA) from Asian buyers that are transitioning to long-term sales and purchase agreements (SPAs).
Ultimately timing for taking FID will be determined by the Government’s pace of approving necessary permits, including the Plan of Development, which we expect to be submitted in the coming months.
What markets is the LNG being sold to?
The scale and timing of this project is attracting interest from a number of buyers. To date, we’ve secured more than 8 MMTPA of non-binding HOA with customers in premium Asian markets, and we are working to transition those to long-term SPAs.
Why is resettlement necessary and what steps are being taken to ensure it has a positive result?
An LNG processing plant, such as the proposed Afungi LNG Park, requires a large area of land for the construction of the onshore and near shore LNG components. Once the construction phase of the project commences, it will also mark the beginning of industrial scale land clearance, excavations and earth moving activities.
The project’s health and safety standards, guided by international health and safety guidelines and best practices, indicate that the nature and scale of construction activities will not allow for communities to remain and continue their subsistence livelihoods in close proximity to the LNG processing plant. As a precautionary safety measure, project-affected communities in the project build zone will need to be resettled to other areas where exposure to potential negative impacts resulting from Project activities, will be less.
We’ve taken significant steps to advance Mozambique LNG in coordination with the government and local communities, and in a manner that reflects our values of integrity and trust, opening communication and servant leadership. We’ve already obtained approval for our Environmental Impact Statement, which came after extensive evaluations of the area, both onshore and offshore. We’ve reached a Memorandum of Understanding with MITADER on resettlement plans. Our community liaisons have done some exceptional work communicating plans and establishing expectations for affected residents, and by constructing our LNG park onshore, we’re planning to create significant job opportunities for local residents, who take part in our established training programs. Our over-arching objective is to ensure this project benefits the people of Mozambique, and every step we’ve taken to date supports that objective.