Friday, July 19, 2019

PTTEP gives green light for Mozambique LNG facility

Jun 19. 2019
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By The Nation

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PTT Exploration and Production (PTTEP) and co-venturers have announced a final investment decision (FID) on the Mozambique Area 1 Project for storage of liquefied natural gas.

 

Phongsthorn Thavisin, president and chief executive Officer of PTTEP, said: “This official declaration of FID confirms that the Mozambique Area 1 project will now advance to the construction phase, a significant step closer to making Mozambique’s first onshore LNG facility a reality. The project will help add to PTTEP production volumes and petroleum reserves for our long-term growth. We are also looking forward to the project’s contribution in meeting the global demand for clean energy.”

Mozambique Area 1 will initially consist of two LNG trains with a total nameplate capacity of 12.88 million tonnes per annum (MTPA) to support the development of the Golfinho/Atum field located entirely within Offshore Area 1. The project, meanwhile, has successfully secured 11.1 MTPA of long-term LNG sales from key buyers in Asia and Europe, with the first cargo expected in 2024. Mozambique Area 1 will add total estimated proved reserves of approximately 140 million barrels of oil equivalent to PTTEP’s portfolio.

Designated as the “First Mover” by the Mozambique government, Area 1 will also be responsible for constructing support facilities to be shared by the adjacent Area 4 project, which will include the materials offloading facility and the LNG marine terminal. Works on the construction of a resettlement village, camp expansion, airstrip and the Palma-Afungi Highway are also progressing.

The project expects soon to issue notices to proceed under the terms of the previously executed engineering, construction, procurement and installation contracts.

Strategically located off the east coast of Africa, Mozambique Area 1 is among PTTEP’s key natural gas projects and reflects the company’s strategy to invest in new areas with competitive cost structure.

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