HomeIndustry SectorsBusiness and marketsLNG development on upward trajectory in Mozambique

LNG development on upward trajectory in Mozambique

The market for liquefied natural gas (LNG) in Mozambique is set to boom as another contract agreement has been confirmed.

New York-based McDermott International announced this week that CCS JV, a joint venture between McDermott, Saipem and Chiyoda, has reached full agreement for a contract with Anadarko Petroleum Corporation for the Mozambique Area 1 Liquefied Natural Gas (LNG) Development.

CCS JV’s project scope includes the onshore engineering, procurement and construction (EPC) for all components of the onshore LNG development, which includes two LNG trains with a total nameplate capacity of 12.88 million tonnes per annum (MTPA) plus the associated utilities and infrastructure.

Previously, CCS JV provided front-end engineering design (FEED) services for this LNG development.

McDermott’s initial portion of the EPC contract award is approximately $2 billion.

“LNG is helping to shape an entirely new era of energy solutions, and McDermott is playing a significant role in this global shift,” said Tareq Kawash, McDermott’s senior vice president for Europe, Africa, Russia and Caspian.

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Anadarko – the primary project sponsor

McDermott’s group senior vice president for projects, Samik Mukherjee, also commented: “The Area 1 Mozambique LNG project will build on McDermott’s industry-leading experience and demonstrate our ability to deliver comprehensive EPC solutions globally for world-scale LNG developments.”

McDermott and Saipem have established a new office in Italy, where a team from both companies will lead the project management, engineering and procurement in advance of sharing on-site construction management responsibilities.

Chiyoda will only provide advisory services for the joint venture. Work at the site is expected to commence when Anadarko issues a notice to proceed after it takes a Final Investment Decision.

As the operator of Offshore Area 1, Anadarko is the primary project sponsor. 

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Babalwa Bungane
Babalwa Bungane is the content producer for ESI Africa - Clarion Events Africa. Babalwa has been writing for the publication for over five years. She also contributes to sister publications; Smart Energy International and Power Engineering International. Babalwa is a social media enthusiast.