The Abu Dhabi National Oil Company (ADNOC) has announced a major international expansion, acquiring a 10 per cent interest in the massive Area 4 concession in Mozambique’s Rovuma basin from Galp Energia.
The deal marks ADNOC’s entry into the East African nation and gives it a share of the liquefied natural gas (LNG) production from the concession, which has a combined planned capacity exceeding 25 million tonnes per annum (mtpa).
The Area 4 concession includes the operational 3.5 mtpa Coral South Floating LNG (FLNG) facility, the planned 3.5 mtpa Coral North FLNG development, and the planned 18 mtpa Rovuma LNG onshore plant.
Musabbeh Al Kaabi, ADNOC Executive Director for Low Carbon Solutions and International Growth, said: “For over 50 years, ADNOC has been a reliable and responsible global provider of LNG and we are building on this role with this landmark investment in the world-class Rovuma supergiant gas basin in Mozambique as we deliver on our international growth strategy.
“Natural gas plays an important role to meet growing global demand with lower emissions compared to other fossil fuels and this acquisition supports our efforts to build an integrated global gas business to ensure we continue providing a secure, reliable and responsible supply of natural gas.”
The Rovuma Onshore LNG project is designed with an electric drive and modular construction approach to dramatically reduce its carbon intensity compared to industry benchmarks.
Its emphasis on limiting CO2 emissions aligns with ADNOC’s net zero goals.
The Rovuma basin represents one of the largest gas discoveries globally in the past 15 years, with proven reserves to provide long-term supply to the FLNG and onshore facilities.
ADNOC will join major partners like Eni, ExxonMobil, CNPC and KOGAS in the Rovuma concession. The deal provides access to world-class gas reserves and LNG production.
The acquisition follows ADNOC recently securing a stake in NextDecade’s LNG project in Texas, reflecting its strategy to build an integrated global gas business and diversify its energy portfolio.
Financial terms were not disclosed, but Galp will receive $650 million upfront and up to $500 million in contingent payments from the sale.
The strategic investment complements ADNOC’s efforts to expand its lower-carbon LNG portfolio to meet growing global gas demand as a transition fuel supporting an orderly energy transition.