Anadarko has revealed that it has made cost savings of US$4 billion on its Mozambique LNG project and that the final investment decision will take place in the first half of 2019.
Mitch Ingram, Anadarko executive vice president, International, Deepwater and Exploration, delivered a keynote address last week at the World Gas Conference in Washington D.C.
Ingram announced he expects the Anadarko-led Mozambique LNG project to be in position to take FID (Final Investment Decision) in the first half of 2019. He also announced the project and its contractors are realizing significant cost savings amounting to approximately $4 billion over 2016 estimates.
As a result of these savings, Anadarko expects to deliver the first two onshore liquefaction trains with 12.88 million tonnes per annum (MTPA) capacity for approximately $7.7 billion, which is less than $600 per tonne.
In addition, the company reiterated that it has announced 6.7 MTPA of off-take agreements and has agreed to key terms for the targeted volume of 8.5 MTPA, enabling it to proceed with incremental project financing discussions with lenders. The focus now is on converting these non-binding commitments into fully termed Sale and Purchase Agreements.