Abu Dhabi National Oil Co. (ADNOC) has acquired Galp’s 10 percent interest in the Area 4 concession of the Rovuma basin in Mozambique, as it continues to execute its international growth strategy.
The acquisition gives ADNOC a share of the liquefied natural gas (LNG) production from the concession, which has a combined production capacity exceeding 25 million metric tons per annum (mtpa), the company said in a news release. The financial details were not disclosed.
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, according to the release.
The investment is ADNOC’s first in Mozambique and complements its efforts to “expand its lower-carbon LNG portfolio to meet growing gas demand and support a just, orderly and equitable energy transition,” the company remarked.
“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,” Musabbeh Al Kaabi, ADNOC Executive Director for Low Carbon Solutions and International Growth, said.
“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,” Al Kaabi added.
The Coral South development is capable of producing up to 3.5 mtpa of LNG, and represents the first facility of its kind in Africa, according to the release. The proposed Coral North development is expected to produce a further 3.5 mtpa of LNG through a FLNG facility to process and liquefy natural gas for export.
The 18-mtpa Rovuma Onshore LNG development is a modular, electric-drive design that will dramatically reduce the carbon intensity of the LNG it produces, when compared to industry benchmarks, ADNOC said. The facility’s design philosophy and its emphasis on limiting carbon dioxide (CO2) emissions aligns with the company’s target of achieving net zero by 2045.
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.
Earlier in the week, ADNOC bought an 11.7 percent stake in phase 1 of the Rio Grande LNG project in Texas, according to a statement Monday. The deal also gives the company 1.9 mtpa of LNG supply from the project’s future Train 4. This was its first acquisition in the USA.
“As global energy demand continues to increase, ADNOC is growing our diversified energy portfolio to ensure a secure, reliable and responsible supply of energy,” Al Kaabi said in an earlier statement.
ADNOC recently signed a 15-year heads of agreement for LNG with EnBW Energie Baden-Württemberg AG, one of the largest energy companies in Germany.
The agreement is for the delivery of 0.6 mtpa of LNG, which will primarily be sourced from Adnoc’s lower-carbon Ruwais LNG project, currently under development in Al Ruwais Industrial City in Abu Dhabi, United Arab Emirates (UAE). The LNG agreement is contingent upon a final investment decision (FID) on the project, including regulatory approvals, and the negotiation of a definitive sale and purchase agreement between the two companies.
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