Anadarko's CEO confirm to Njusi his company's interest in building Palma's LNG project
(2015-07-20) Speaking in Maputo recently, Al Walker, the president of the board of directors and CEO of Anadarko, reiterated his company’s interest in building one of the largest liquefied natural gas (LNG) projects in the world in Cabo Delgado.
This intention was expressed during a meeting with President Filipe Nyusi, at which Mr Walker also congratulated the head of state on assuming office.
"Thank you for the opportunity to meet President Nyusi today and further strengthen the partnership between Anadarko and the people of Mozambique, working together to develop this important source of energy for Mozambique and the rest of the world," said Walker.
Walker reported that he had discussed with the president the importance of concluding important agreements with the government to move the project forward. "At the same time, we established additional context around the competitive nature of global LNG markets, and the importance of moving forward with the project to ensure maximum benefits for the government, for the people of Mozambique and for our partners."
Anadarko and its venture partners discovered about 75 trillion cubic feet (tcf) of recoverable natural gas in Offshore Area 1, enough to put Mozambique among the largest exporters of LNG in the coming years.
A recent Standard Bank report entitled LNG Mozambique: Macroeconomic Study quoted by Anadarko estimates that by 2035, Mozambique LNG projects will have created more than 700,000 direct and indirect jobs, generated US$39 billion for the Mozambican economy, expanded transport infrastructure, including air, road and marine, as well as creating significant opportunities for small and medium enterprises.
To date, Anadarko has secured reserve certification to exploit the Prosperidade and Golfinho/Atum areas, has selected a contractor to create two initial liquefaction plants with a capacity of six million tonnes per annum (MMTPA), has concluded more than eight MMTPAs-worth of non-binding LNG flow agreements which will move towards purchase-and-sales agreements in the long term, and has secured principal financing to 60 percent of the project funding goal.
Anadarko has a 26.5% working interest in Offshore Area 1. Partners include the National Hydrocarbon Company EP, ENH (15 percent), Mitsui E & P Mozambique Area1 Ltd. (20 percent), ONGC Videsh Ltd. (16 percent), Bharat Petro Resources Ltd. ( 10 percent), the PTT Exploration & Production Plc (8.5 percent) and Oil India Ltd. (4 percent).