When do you expect to take FID?
We anticipate being in a position to take FID in 1H 2019. The Area 1 consortium, led by Anadarko, continues to advance the Project toward FID and has made good progress in delivering the key elements required. The completion of the Legal and Contractual Framework, the start of resettlement, Development Plan approval and site preparation further reinforces Mozambique LNG’s leading position as a future global energy leader. Additionally, we have secured key terms and conditions for sales exceeding our minimum target for FID. At this time not all deals have been publicly announced. We are currently in the process of converting the various Heads of Agreements to fully termed Sale and Purchase Agreements which are necessary to support a positive final investment decision.
What is Anadarko's LNG vision for Mozambique?
Anadarko-led Mozambique LNG is an emerging leader in the global LNG industry working to develop the first onshore LNG facility in Mozambique. Having discovered approximately 75 trillion cubic feet of recoverable natural gas in Offshore Area 1, Mozambique LNG represents an extraordinary opportunity to supply increasing market demand for a sustainable, reliable and cleaner source of energy for decades to come. Initial plans are for a two-train project but with scope to expand up to 50 MTPA. Mozambique LNG’s location provides a geographic advantage to meet the needs of customers in the Atlantic and Asia-Pacific markets plus support growing market opportunities in the Middle East and Indian sub-continent. Anadarko and the participants in Mozambique LNG continue to demonstrate a commitment to working collaboratively with the Mozambican government and local communities to safely develop these natural resources in a manner that protects the environment and encourages unprecedented foreign investment, contributing to the long-term economic stability of the region.
Is there still robust interest from buyers?
We have made good progress on marketing and have secured key terms and conditions for sales exceeding our minimum target for FID. We are currently in the process of converting the various Heads of Agreements to fully termed Sale and Purchase Agreements which are necessary to support a positive final investment decision.
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.