The Mozambique government and
concessionaires Eni and Anadarko yesterday passed a significant milestone for
the beginning of production of liquefied natural gas (LNG) in areas 1 and 4 of
the Rovuma basin in Cabo Delgado. The parties have signed the concession
contracts for the unloading facility, the LNG Maritime Terminal and their
special licenses, all crucial for the mobilisation of LNG production financing.
The contracts were signed by Minister Leticia Klemens, Anadarko’s deputy
chairman for International Relations John Grant and Eni East Africa SPa’s
director Fabio Castiglion.
Other uses, such as the production of
fertilisers, liquid fuels and electricity, will require even more work,
dedication and cooperation between the parties involved, Minister of Mineral
Resources and Energy has said.
Minister Klemens stressed that the
contracts signed yesterday impose rights and obligations on all parties and
appealed to the concessionaires to comply with their obligations and observe
the legal and contractual framework applicable to projects in the Rovuma basin.
One of the steps to be taken is the resettlement of the more than 5,000
inhabitants of the Afungi peninsula in Palma to make way for the construction
of the liquid gas plant. Klemens says the resettlement must be handled with
great care, as Mozambique has learned from other similar projects that this
must be approached in a sustainable manner. The signing of the maritime
concession contracts comes months after Eni and its partners signed contracts
for drilling and the construction of production facilities, as well as
agreements on the financing and legal framework of their gas project. In this
context, Klemens said she hoped that yesterday’s ceremony would also be a major
step towards a final investment decision for the Area 1 project operated by
American company Anadarko, which, unlike Eni’s, will be developed on land. The
completion of production projects in the Rovuma basin could make Mozambique one
of the world’s top three natural gas producers in the world.
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