ADNOC to Acquire 10% Equity Stake in Major LNG Development in Mozambique
Equity stake in Area 4 concession within Mozambique’s Rovuma basin acquired from Galp, supporting ADNOC’s international growth strategy
First investment in Mozambique complements ADNOC’s efforts to expand its lower-carbon LNG portfolio to meet growing gas demand and support a just, orderly and equitable energy transition
Acquisition provides access to world-class gas projects and reserves in the concession with a combined potential LNG capacity of more than 25 mtpa
Abu Dhabi, UAE – May 22, 2024: ADNOC announced today the acquisition of Galp’s 10% interest in the Area 4 concession of the Rovuma basin in Mozambique, marking a major milestone in the company’s international growth strategy. The acquisition will entitle ADNOC to a share of the liquefied natural gas (LNG) production from the concession, which has a combined production capacity exceeding 25 million tonnes per annum (mtpa).
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. This strategic investment is ADNOC’s first in Mozambique and complements ADNOC’s efforts to expand its lower-carbon LNG portfolio to meet growing gas demand and support a just, orderly and equitable energy transition.
Musabbeh Al Kaabi, ADNOC Executive Director for Low Carbon Solutions and International Growth, said: “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. 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 in operation, is capable of producing 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 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. The facility’s design philosophy and its emphasis on limiting carbon dioxide (CO2) emissions aligns with ADNOC’s ambition to achieve 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.
# # #
