Mozambique secures contract for construction of onshore liquefied natural gas

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10-06-2019
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Construction Review Online
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Italian engineering, procurement, and construction (EPC) contracting giant Saipem, in a joint venture with America’s McDermott International and Japan-headquartered Chiyoda Corporation, has reached an agreement with Area 1 Concessionaires – a wholly owned subsidiary of Anadarko Petroleum Corporation for the development of Mozambique Area 1 Liquefied Natural Gas (LNG)

The joint venture project scope include construction, procurement and engineering for all components of the onshore LNG development, this include two LNG trains with a total nameplate capacity of 12.88 million tonnes per annum (MTPA) plus associated infrastructure and utilities.

“LNG is shaping an entirely new era of energy solutions and McDermott is playing a crucial role in this global shift. The project will be built based on McDermott’s industry-leading experience and ability to deliver EPC solutions globally,” said McDermott’s Senior Vice President for Europe, Africa, Russia and Caspian Mr Tareq Kawash.

Earlier the JV provided front-end engineering design (FEED) services for the LNG development. McDermott’s initial portion of the EPC contract award is about US $2bn. Saipem and McDermott have established a new office in Milan, Italy to lead in Engineering, procurement and project management. This will aid in sharing on-site construction management responsibilities, the new plan will also see McDermott perform engineering from both India, Gurgaon and London. On the other side Chiyoda will provide advisory services for the JV.

Construction works are expected to start when Anadarko issues a Notice to Proceed after it takes a Final Investment Decision (FID). In addition as the operator of Offshore Area 1, Anadarko is the main project sponsor while other sponsors include Beas Rovuma Energy Mozambique Limited, ENH Rovuma Área Um, BPRL Ventures Mozambique B.V., S.A, PTTEP Mozambique Area 1 Limited, ONGC Videsh Ltd and Mitsui E&P Mozambique Area 1 Ltd.