The Abu Dhabi National Oil Company (ADNOC) announced on Wednesday the acquisition of Galp’s 10 percent interest in the Area 4 concession of the Rovuma basin in Mozambique, marking a major milestone in the company’s global expansion.
The 10 percent interest will provide ADNOC with a share of the concession’s liquefied natural gas (LNG) production, which has a capacity of over 25 million tonnes per annum. The Area 4 concession includes the operational Coral South Floating LNG (FLNG) facility, the planned Coral North FLNG development, and the planned Rovuma LNG onshore facilities.
ADNOC expands globally
This LNG investment is ADNOC’s first in Mozambique. It also supports the company’s efforts to expand its lower-carbon LNG portfolio to meet the growing demand for gas. Moreover, it supports a just, orderly and equitable energy transition.
Mozambique’s Coral South LNG development has a production capacity of almost 3.5 million tonnes per annum and it’s the first of its kind in Africa. The upcoming Coral North development should reach a capacity of another 3.5 million tonnes per annum of LNG. This LNG will go through an FLNG facility to process and liquefy the gas for export.
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Mozambique’s 18 million tonnes per annum Rovuma Onshore LNG development is a modular, electric-drive design that will significantly reduce carbon emissions from the LNG it produces compared to industry benchmarks. Moreover, the region’s gas basin is one of the world’s largest gas discoveries in the past 15 years, making it one of ADNOC’s most strategic investments and expansions.
In addition to the investment in Mozambique, ADNOC has also announced its first expansion into the United States this week with the acquisition of an 11.7 percent stake in Phase 1 (Trains 1-3) of NextDecade’s Rio Grande LNG export project in Texas.
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