Anadarko authorizes $20B Mozambique LNG project as planned

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The Woodlands-based Anadarko Petroleum is developing a 12.88 million metric ton liquefied natural gas plant in Mozambique.
The Woodlands-based Anadarko Petroleum is developing a 12.88 million metric ton liquefied natural gas plant in Mozambique.

Photo: Anadarko

The Woodlands-based Anadarko Petroleum is developing a 12.88 million metric ton liquefied natural gas plant in Mozambique.
The Woodlands-based Anadarko Petroleum is developing a 12.88 million metric ton liquefied natural gas plant in Mozambique.

Photo: Anadarko

Anadarko authorizes $20B Mozambique LNG project as planned

Anadarko Petroleum authorized the roughly $20 billion Mozambique liquefied natural gas export project on Tuesday at a celebratory event in the eastern African nation.

The massive LNG project is expected to be sold to the French energy major Total after Houston’s Occidental Petroleum acquires Anadarko. But the sale isn’t expected to slow down construction in Mozambique. Anadarko had said in May it planned to sign off on the project on June 18.

The project is one of two major LNG efforts moving forward in Mozambique along with Exxon Mobil’s Rovuma LNG project.

The Mozambique LNG plans represent the largest oil and gas investment ever made in sub-Saharan Africa, said Jon Lawrence, an African energy analyst for the Wood Mackenzie energy research firm.

“With strong LNG demand growth out of Asia, now is Mozambique’s time,” Lawrence said.

In a little more than a decade, government revenues from the project will reach $3 billion per year, single-handedly doubling Mozambique’s existing state revenues, he said.

RELATED: Mozambique authorizes Exxon Mobil’s Rovuma LNG project

Earlier in June, Anadarko said a joint venture led by Houston’s McDermott International will the project.

Occidental Petroleum is buying Anadarko for $38 billion and then – to help finance the deal – Oxy is selling Anadarko’s Africa assets to Total for $8.8 billion, including the crown jewel Mozambique project.

Total is the second-largest LNG player in the world – and rising – behind Royal Dutch Shell.

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