PTTEP finalises Mozambique LNG field
SET-listed oil and gas drilling firm PTT Exploration and Production (PTTEP) expects estimated proven reserves to reach 140 million barrels of oil equivalent in 2024 after its consortium made a final investment decision on Rovuma Offshore Area 1 in Mozambique.
This decision was made after the liquefied natural gas (LNG) field won the Mozambique government’s approval. The first cargo will be delivered in 2024.
PTTEP holds a 8.5% stake in Rovuma Offshore Area 1 through a subsidiary, PTTEP Mozambique Area 1. The rest is held by Anadarko (26.5%), Mitsui E&P Mozambique Area 1 Ltd (20%), Empresa Nacional de Hidrocarbonetos (15%), and BPRL Ventures Mozambique BV, ONGC Videsh and BEAS Rovuma Energy Mozambique (10% each).
Phongsthorn Thavisin, president and chief executive of PTTEP, said the development cost is expected to be US$20 billion (625 billion baht) for the gas liquefaction and export plant, while the consortium expects to obtain project finance for 60% of the cost.
The consortium plans to develop two onshore liquefaction trains.
“This project will now progress into the construction phase at the Golfinho-Atum natural gas accumulations located in offshore Area 1, which will be the onshore LNG facility of the first two liquefaction trains,” Mr Phongsthorn said.
Total nameplate capacity will stand at 12.88 million tonnes a year.
The Rovuma Offshore Area 1 project will be the first onshore LNG facility in Mozambique. The project has secured long-term LNG contracts for 11.1 million tonnes a year with key buyers in Asia and Europe, representing more than 80% of the plant’s capacity.
The government of Mozambique aims for the project to be the firstmover in the country, so Mozambique Area 1 will be responsible for building support facilities to be shared with the adjacent Area 4 project, including a materials offloading facility and the LNG marine terminal.
“This is a solid foundation for future development, as the project holds substantial recoverable natural gas resources of 75 trillion cubic feet and is potentially on the path to becoming one of the world’s largest emerging LNG supply hubs,” Mr Phongsthorn said.
Following this investment decision, the project expects to issue notices to proceed under the terms of engineering, construction, procurement and installation contracts.
Rovuma Offshore Area 1 in Mozambique is located off the east coast of Africa.
This gas field is one of PTTEP’s key natural gas projects, part of the company’s strategy to invest in new areas with competitive cost structures, Mr Phongsthorn said.