The feed gas for new LNG projects will come from the ultra-deepwater Rovuma Basin, where over 125 trillion ft3 of recoverable natural gas resources have been discovered to date. This consists of 75 trillion ft3 in block Area 1 and 50 trillion ft3 in block Area 4. Participants in Area 1 and 4 are now progressing towards final investment decisions (FID) for the onshore LNG terminals.
Cao Chai, Oil and Gas Analyst at GlobalData, says: “The development break-even gas price of around US$4-5 per thousand ft3 for the onshore LNG projects in Mozambique is competitive compared to current Japan spot LNG prices of US$9.24 per thousand ft3. This is due to the relatively low expected CAPEX per million tpy in comparison to other integrated LNG projects around the world, and the low upstream cost compared to non-integrated LNG projects in the Americas.”
