When do you expect to take FID?
We made significant progress in 2016 on a number of important government agreements and hope to finalize them shortly. There continues to be robust interest in the project from LNG customers.
Our immediate priority is to complete the set of agreements with the government known as the legal and contractual framework. We will take FID once the three elements - legal and contractual framework, offtake agreements and project financing are fully in place.
What is Anadarko's LNG vision for Mozambique?
Mozambique LNG is emerging as a global LNG leader with approximately 75 Tcf of recoverable natural gas resources discovered to-date in the Offshore Area 1. At year-end 2015, the Area 1 joint venture had invested approximately $5 billion gross, and we have made significant advancements in a world-scale LNG development. We are planning an initial development of approximately 12 MMTPA (2 x 6 MM PTA onshore liquefaction trains) and a site plan that will facilitate future expansions of more than 50 MM PTA.
Is there still robust interest from buyers?
Buyers continue to express strong interest in the Mozambique project as it offers supply diversity and room for future growth. New supply projects must come on-stream to meet long term demand as imports into new emerging Asian markets are anticipated to increase significantly.
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.