Adnoc, the Abu Dhabi National Oil Company, made a significant announcement regarding its acquisition of Galp’s 10 percent stake in the Area 4 concession of the Rovuma basin in Mozambique. This move marks a key milestone in Adnoc’s international growth strategy, granting the company access to a share of the liquefied natural gas (LNG) production from the concession, which boasts a 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 represents Adnoc’s first venture in Mozambique and aligns with its efforts to expand its lower-carbon LNG portfolio to meet rising gas demand.
Musabbeh Al Kaabi, Adnoc’s executive director for low carbon solutions and international growth, emphasized the significance of this investment in the Rovuma supergiant gas basin in Mozambique. Al Kaabi highlighted the crucial role of natural gas in meeting global demand with lower emissions compared to other fossil fuels. The acquisition supports Adnoc’s ambition to establish an integrated global gas business that ensures a secure, reliable, and responsible supply of natural gas to consumers worldwide. The Coral South development, currently operational, has a capacity to produce up to 3.5 mtpa of LNG and represents a pioneering facility in Africa. The proposed Coral North development aims to add another 3.5 mtpa of LNG via a FLNG facility for processing and liquefying natural gas for export.
Moreover, the 18-mtpa Rovuma Onshore LNG development adopts a modular, electric-drive design that significantly reduces the carbon intensity of the LNG produced, aligning with Adnoc’s commitment to achieve net zero emissions by 2045. The emphasis on limiting carbon dioxide (CO2) emissions in the facility’s design philosophy mirrors Adnoc’s dedication to sustainability and environmental responsibility. The Rovuma supergiant gas basin in Mozambique is home to one of the largest gas discoveries in recent years, with proven reserves that guarantee a stable supply of natural gas to both the FLNG and Onshore facilities. This presents a valuable opportunity for Adnoc to contribute to meeting global energy demand while supporting a green energy transition.
In conclusion, Adnoc’s acquisition of Galp’s interest in the Area 4 concession of the Rovuma basin in Mozambique underscores the company’s commitment to expanding its international presence and diversifying its LNG portfolio. The investment in the Rovuma supergiant gas basin aligns with Adnoc’s sustainability goals, focusing on lowering emissions and promoting a responsible energy transition. With the potential to access a significant share of LNG production in the region, Adnoc is well-positioned to meet growing global gas demand while contributing to a cleaner energy future. This strategic move reinforces Adnoc’s position as a key player in the global energy sector and sets the stage for further growth and development in the LNG market.
