ADNOC Acquires 10% Stake In Mozambique’s LNG Development
July 18, 2024
Markets Oil & Gas

ADNOC Acquires 10% Stake In Mozambique’s LNG Development

Area 4 Concession Features Significant Projects

Abu Dhabi National Oil Company (ADNOC) has made its first-ever LNG investment in Mozambique. The acquisition involves a 10% equity stake in the Area 4 concession within Mozambique’s Rovuma basin from Portuguese multinational energy corporation Galp.

The investment diversifies Abu Dhabi-based ADNOC’s portfolio and demonstrates its commitment to meeting global energy demands while embracing a lower-carbon future.

The Area 4 concession is a treasure trove of significant projects: the operational Coral South Floating LNG (FLNG) facility, the forthcoming Coral North FLNG development, and the planned Rovuma LNG onshore facilities.

With a potential LNG capacity exceeding 25 million tonnes per annum (mtpa), the acquisition opens the doors to world-class gas projects and reserves for ADNOC, solidifying its position as a key player in the global LNG market.

Meeting Demand

Commenting on the acquisition, Musabbeh Al Kaabi, ADNOC Executive Director for Low Carbon Solutions and International Growth, emphasised the company’s commitment to sustainability and global energy leadership: “ADNOC’s investment in the Rovuma basin underscores our dedication to providing a secure, reliable, and responsible supply of natural gas to meet the world’s growing energy needs.

ADNOC stake
ADNOC branding at ADIPEC 2023 promoting the Emirati energy firm’s net zero ambition. Credit: Arnold Pinto

“We believe in the pivotal role of natural gas in achieving lower emissions and facilitating a just energy transition.”

The Coral South development, currently operational, boasts a capacity of up to 3.5 mtpa of LNG, making it the first facility of its kind on the African continent.

Its counterpart, the Coral North development, is poised to add another 3.5 mtpa through a FLNG facility, further solidifying Mozambique’s position as a significant player in the global LNG market.

The 18-mtpa Rovuma Onshore LNG development is of particular significance. It is distinguished by its innovative modular, electric-drive design. This design aims to reduce carbon intensity substantially, a forward-thinking approach that aligns with ADNOC’s ambitious target of achieving net-zero emissions by 2045.

Mozambique’s Rovuma basin represents one of the most substantial gas discoveries of the past decade. It offers proven reserves capable of providing a stable natural gas supply to FLNG and onshore facilities. ADNOC’s foray into this growing market underscores its global expansion strategy and reinforces its position as a leader in transitioning to a lower-carbon energy future.

Featured image: ADNOC’s exhibitor pavilion area at ADIPEC 2023 in Abu Dhabi. Credit: Arnold Pinto

    Arnold Pinto

    Arnold Pinto

    Arnold Pinto is an award-winning journalist with wide-ranging Middle East and Asia experience in the tech, aerospace, defence, luxury watchmaking, business, automotive, and fashion verticals. He is passionate about conserving endangered native wildlife globally. Arnold enjoys 4x4 off-roading, camping and exploring global destinations off the beaten track.
    Follow Me:

    Related Posts

    Leave a Reply

    Your email address will not be published. Required fields are marked *