Anadarko, Eni hope to export LNG from Mozambique in 2018

Anadarko Petroleum Corp. and Italian oil and gas company Eni hope to begin exporting liquefied natural gas from Mozambique in 2018 after inking a deal to build a massive plant in the southeast African country.

Plans call for development of a plant in the Cabo Delgado province of northern Mozambique that would eventually be capable of producing 50 million tons of LNG per year. Designs will include four liequefaction trains, as the production lines are called, each with capacity of 5 million tons per year.

The initial phase of the project, including subsea development and the construction of two trains, is projected to cost $15 billion, Anadarko spokesman John Christiansen said.

The project would advance efforts to take advantage of major natural gas discoveries in the area.

Anadarko, and oil and gas independent based in The Woodlands,  and its partners have made  two big finds in Mozambique’s Rovuma Basin. One is estimated to hold 17  trillion to more than 30   trillion cubic feet of recoverable natural gas resources. The other is estimated to hold 15 trillion to 35 trillion cubic feet . A third potential discovery is under evaluation, with an appraisal well planned for early 2013.

“Our commercial and technical teams have proven the ability to work collaboratively through these discussions, as we work alongside the Mozambican government,” Anadarko President and CEO Al Walker said in a statement.

The plan is to develop the common natural gas reservoirs spanning both Mozambique’s Offshore Area 1, which is operated by Anadarko, and Offshore Area 4, which is operated by Eni. The two firms will conduct separate, coordinated, offshore development activities, while jointly planning and building the LNG export plant.

Several other firms will be involved in the engineering and design of the facility. They include JGC Corp., Fluor Transworld Services Inc. and Bechtel Co.