Abu Dhabi's national oil company ADNOC has acquired a 10% interest in an LNG project offshore Mozambique as it continues to expand its international natural gas operations.
ADNOC has bought the 10% stake in the Area 4 concession of the Rovuma basin in Mozambique held by Portugal's Galp. The deal will entitle ADNOC to a share of the LNG production from the concession, which has a combined production capacity exceeding 25 million tonnes per annum (mtpa), the state energy firm of the United Arab Emirates (UAE) said on Wednesday.
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 is ADNOC's first in Mozambique and complements ADNOC's efforts to expand its lower-carbon LNG portfolio to meet growing gas demand and support a just, orderly and equitable energy transition," the company said, announcing a second major acquisition of an LNG stake this week.
On Monday, ADNOC said it had bought an 11.7% stake in Phase 1 of NextDecade's Rio Grande LNG export project in Texas, announcing its first strategic investment in the U.S.
ADNOC has also signed a 20-year LNG offtake agreement from Rio Grande LNG Train 4 with NextDecade.
ADNOC has been looking to expand abroad and broaden its LNG portfolio with lower-carbon gas supply.
According to the UAE's firm, NextDecade's Rio Grande LNG would be a "world-class lower-carbon LNG project."
Rio Grande LNG near Brownsville, Texas, is the first U.S. LNG project offering expected emissions reduction of more than 90% through its proposed carbon capture and storage (CCS) project, ADNOC noted.
The CCS project is expected to capture and permanently store more than 5 million metric tons per annum of carbon dioxide (CO2) - equivalent to removing 1 million vehicles from the road annually.
By Tsvetana Paraskova for Oilprice.com
Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. More
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