Anadarko Awards Fluor/JGC Joint Venture Mozambique LNG Onshore FEED Contract

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Anadarko Mocambique Area 1 Limitada has awarded the front-end engineering and design (FEED) contract for an onshore natural gas liquefaction facility in Mozambique to a 50:50 joint venture (JV) between Fluor Corporation (NYSE:FLR) (Irving, Texas) and JGC Corporation (TYO:1963) (Japan).

The project will be sited in the Cabo Delgado province, 2,000 kilometers northeast of the capital Maputo.

The FEED will cover designs for the initial phase of the LNG project for four trains, with each train capable of producing 5 million tons of LNG annually, for a total capacity of 20 million tons in this phase of the project. The project has the potential to expand capacity up to approximately 50 million tons annually as future project phases are put into effect.

The natural gas feedstock will come from offshore production facilities at Offshore Area 1, operated by Anadarko, and Offshore Area 4, operated by Eni SpA (NYSE:E) (Rome, Italy). The first LNG cargo to come out of the facility is scheduled for 2018.

For related information on the project's offshore contracts, see December 27, 2012, article - Rich Contract Pickings for International Companies from Mozambique's Major LNG Project.

Anadarko Mocambique Area 1 Limitada consists of Anadarko Petroleum Corporation (NYSE:APC) (The Woodland, Texas) (36.5%), Mitsui E&P Mozambique Area 1 Limited (NYSE:SMFG) (Tokyo, Japan) (20%), Empresa Nacional de Hidrocarbonetos (Maputo) (15%), BPRL Venture Mozambique B.V. (Amsterdam, Netherlands) (10%) , Videocon Mozambique Rovuma 1 Limited (BSE:VIDEOCON.BO) (Mumbai, India) and PTT Exploration & Production Plc (OTC:PEXNY) (Bangkok, Thailand) (8.5%).

"In the region, this is an important and strategic win for both joint venture parent companies," said Peter Oosterveer, president of Fluor's energy and chemical group. "We brought together a talented and experienced team that leverages the combined strengths of JGC's industry-leading LNG experience with Fluor's 50-plus-year reputation for executing large, complex projects in sub-Saharan Africa."

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.