Anadarko Petroleum authorised the roughly $20 billion Mozambique liquefied natural gas export project on Tuesday at a celebratory event in the eastern African nation.
The massive LNG project is expected to be sold to the French energy major Total after Houston’s Occidental Petroleum acquires Anadarko. But the sale isn’t expected to slow down construction in Mozambique. Anadarko had said in May it planned to sign off on the project on June 18.
The Mozambique LNG plans represent the largest oil and gas investment ever made in sub-Saharan Africa, said Jon Lawrence, an African energy analyst for the Wood Mackenzie energy research firm.
“With strong LNG demand growth out of Asia, now is Mozambique’s time,” Lawrence said.
In a little more than a decade, government revenues from the project will reach $3 billion per year, single-handedly doubling Mozambique’s existing state revenues, he said.
Earlier in June, Anadarko said a joint venture led by Houston’s McDermott International will build the LNG terminal project. TechnipFMC will lead most of the offshore work.
Occidental Petroleum is buying Anadarko for $38 billion and then – to help finance the deal – Oxy is selling Anadarko’s Africa assets to Total for $8.8 billion, including the crown jewel Mozambique project.
Total is the second-largest LNG player in the world – and rising – behind Royal Dutch Shell.
Anadarko is the operator of the Mozambique LNG project with a 26.5 percent ownership stake. Japan’s Mitsui holds 20 percent; the Mozambique government has a 15 percent stake; three state-controlled Indian firms combine to hold 30 percent; and Thailand’s PTT Exploration & Production has the 8.5 percent.
The full version of this article first appeared on the Houston Chronicle – an Energy Voice content partner. For more from the Houston Chronicle click here.