Anadarko Petroleum selects Chiyoda, CB&I and Saipem JV for onshore LNG park in Mozambique

CCS joint venture (JV), a consortium of Japan based Chiyoda, CB&I and Italian company Saipem, has won a contract from US based company Anadarko Petroleum to carry out initial work of $15bn onshore LNG park in Mozambique.

The project has been awarded to the consortium by Anadarko on behalf of Mozambique’s Offshore Area 1 after a competitive FEED (front-end engineering and design) process.

Andarko owns a 26.5% working interest in the block with other partners being Empresa Nacional de Hidrocarbonetos (ENH) owning 15%, Mitsui E&P Mozambique Area1 with 20% and ONGC Videsh having 16% stakes in it.

Bharat PetroResources, PTT Exploration & Production, and Oil India also holds 10%, 8.5% and 4% interest in the project respectively.

The consortium will be responsible for setting up two LNG trains, each having a capacity of 6 MMTPA, for the LNG park.

Though the co-venturer’s for the Offshore Area 1 have not raised the estimated costs for the original productions, the new plan for the trains show an increase of 1 MMTPA per train over the initial plan.

Scope of the deal also includes delivery of two LNG storage tanks, each having a capacity of 180,000m³, condensate storage, multi-berth marine jetty and associated utilities and infrastructure.

Selection of the JV is, however, subject to negotiation. The deal will lead to the formation of a definitive agreement before Anadarko and its co-venturers come up with Final Investment Decision (FID).

Anadarko chairman president and CEO Al Walker said: "I am incredibly proud of our co-venture for all of the accomplishments achieved to date, including securing more than 8 million tonnes per annum (MMTPA) in non-binding long-term off-take agreements, which are now progressing toward binding SPAs (Sales and Purchase Agreements), obtaining letters of intent from lenders for project financing at a very material level, and working with the newly elected Government to keep the project moving forward."

Anadarko and its partners will submit the Plan of Development for the project to the African country’s government in the future.