ADNOC to acquire 10% equity stake in major LNG development in Mozambique

ADNOC announced today that it has acquired Portuguese energy corporation Galp’s 10% stake in the Area 4 concession of the Rovuma basin in Mozambique, marking a significant milestone in the company’s international growth strategy.

As a result of the acquisition, ADNOC will receive a share of the liquefied natural gas (LNG) production from the concession, which has a combined production capacity exceeding 25 million tonnes per annum (mtpa). The Area 4 concession comprises the operational Coral South Floating LNG (FLNG) facility, the planned Coral North FLNG development, and the planned Rovuma LNG onshore facilities.

A just transition

The strategic investment marks ADNOC’s first in Mozambique and supports its efforts to expand its lower-carbon LNG portfolio in response to rising gas demand, while also facilitating an equitable energy transition.

“Natural gas plays an important role in meeting 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,” Musabbeh Al Kaabi, Executive Director for Low Carbon Solutions and International Growth at ADNOC, said in a press statement.

The Coral South development, currently in operation, can produce up to 3.5 million tonnes per annum (mtpa) of LNG and represents the first facility of its kind in Africa. The proposed Coral North development aims to produce a further 3.5 mtpa of LNG through a Floating Liquefied Natural Gas (FLNG) facility to process and liquefy natural gas for export. 

The 18-mtpa Rovuma Onshore LNG development is a modular, electric-drive design that will dramatically reduce the carbon intensity of the LNG it produces when compared to industry benchmarks. The facility’s design philosophy and its emphasis on limiting carbon dioxide (CO2) emissions align with ADNOC’s ambition to achieve net zero by 2045.

Mozambique’s Rovuma supergiant gas basin represents one of the world’s largest gas discoveries in the past fifteen years and holds proven reserves to provide a stable supply of natural gas to the FLNG and Onshore facilities.