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Italian oil and gas firm Saipem, in a joint venture with McDermott International and Chiyoda Corporation, has reached an agreement with Area 1 Concessionaires on an EPC contract to engineer and construct an onshore LNG project in Mozambique

13692583313 2dedd65257 zThe LNG project consists of the construction of two LNG trains. (Image source: kees torn/Flickr)

As part of the project for a volume currently equal to about US$6bn, Saipem will operate as the leader of CCSJV s.c.a.r.l. (CCS JV), the joint venture incorporated in Italy to carry out the project.

The LNG project consists of the construction of two LNG trains, with a total nameplate capacity of 12.88 million tonnes per annum (mtpa), as well as all necessary associated infrastructures, storage tanks and export jetty facilities.

The EPC contract is subject to a full notice to proceed with which Anadarko is expected to issue after the final investment decision (FID).

Stefano Cao, Saipem’s CEO, said, “After many years of dedication to this project, we are very happy to announce that we have reached a full agreement for the contract. We congratulate Anadarko and its co-venturers for the achievement and grateful for the confidence demonstrated toward our CCS JV. We look forward to mobilising our teams to site after Anadarko issues notice to proceed following the FID.”

“With this project, we will strengthen our presence in East Africa, confirming Saipem’s role among the leaders in the LNG market for the energy transition. A project of such a scale will contribute significantly to the economic growth of Mozambique as a new pole in the west-east energy routes and, as Saipem, we are proud of our substantial contribute to these future developments,” he added.

The contract was executed by Anadarko Moçambique Area 1, Lda, a wholly-owned subsidiary of Anadarko Petroleum Corporation, which operates Offshore Area 1 and acts as the front runner of a venture including other leaders in the energy sector, such as ENH Rovuma Área Um, S.A, Mitsui E&P Mozambique Area1 Ltd, ONGC Videsh Ltd, Beas Rovuma Energy Mozambique Limited, BPRL Ventures Mozambique B.V. And PTTEP Area 1 of Mozambique Limited.