ADNOC has acquired 10% of Portuguese oil and natural gas company, Galp’s interest in the Area 4 concession of the Rovuma basin in Mozambique, granting the UAE company a share of the liquefied natural gas (LNG) production from the concession, which has a combined production capacity exceeding 25 million tons per annum (mtpa).
The Area 4 concession encompasses the operational Coral South Floating LNG (FLNG) facility, the planned Coral North FLNG development, and the planned Rovuma LNG onshore facilities.
This acquisition represents ADNOC’s first investment in Mozambique and aligns with the company’s efforts to expand its lower-carbon LNG portfolio to meet the rising demand for gas and support a just, orderly, and equitable energy transition, the company stated in a press release on Wednesday.
“For over fifty years, ADNOC has been a reliable and responsible global provider of LNG, and we are building on this role with this landmark investment in the world-class Rovuma supergiant gas basin in Mozambique as we deliver on our international growth strategy,” said Musabbeh Al Kaabi, ADNOC Executive Director for Low Carbon Solutions and International Growth. “Natural gas plays an important role to meet growing global demand with lower emissions compared to other fossil fuels and this acquisition supports our efforts to build an integrated global gas business to ensure we continue providing a secure, reliable and responsible supply of natural gas.”
The Coral South development, currently operational, has the capacity to produce up to 3.5 mtpa of LNG and represents the first facility of its kind in Africa.
The proposed Coral North development is expected to add a further 3.5 mtpa of LNG through an FLNG facility.
Additionally, the 18-mtpa Rovuma Onshore LNG development, featuring a modular, electric-drive design, is designed to reduce the carbon intensity of the LNG it produces, aligning with ADNOC’s goal to achieve net zero by 2045.
Notably, Mozambique’s Rovuma supergiant gas basin represents one of the world’s largest gas discoveries in the past fifteen years and holds proven reserves to provide a stable supply of natural gas to the FLNG and Onshore facilities.
