Mozambique LNG Project to create over 17000 jobs in US

The $20 billion Mozambique liquified natural gas (LNG) project  is set to greatly benefit United States companies as well as job creation in over nine states according to the US Export Import Bank.

According to the bank the project has seen it authorize amongst the largest transactions in EXIM’s history, a $4.7 billion transaction assisting the construction of a liquified natural gas (LNG) project in Mozambique following a mandate by congress that it focus on promoting the expansion of EXIM’s financial commitments in sub-Saharan Africa.

Among the biggest beneficiary states from the project include Florida, Georgia, Louisiana, New York, Oklahoma, Pennsylvania, Tennessee, Texas, and the District of Columbia from where 68 U.S. suppliers originate from earning just under 10 percent of the project cost.

Further this sales are expected to translate to about 16,700 direct American jobs with follow-on sales expected to support thousands of additional jobs across the United States over a 5 year construction period..

According to President and Chairman of the Board of Directors, Export-Import Bank of the United States Kimberly A. Reed who was speaking on “Future Directions of the Export-Import Bank of the United States virtual event” this among other deals are not just significant in neutralizing China and advancing the United States comparative leadership in the world but also empowering the Mozambican population.

“This transaction is significant not only because of its historic size, the U.S. jobs supported, and the potential for economic freedom for the Mozambique people, but because EXIM’s involvement helped displace Chinese and Russian financing from this deal,” he said.

Through fees and interest earned, the transaction is also anticipated to generate more than $600 million in revenue for U.S. taxpayers, according to EXIM projections.

The US influence is better felt in Area 4 block where US oil giant ExxonMobil is the operator (contains more than 85 trillion cubic feet of natural gas) with its acquisition of a 25 percent indirect interest in 2017. ExxonMobil is leading the construction and operation of all future natural gas liquefaction and related facilities, while Italian giant Eni will continue to lead the Coral floating LNG project and all upstream operations. Among US companies involved in the onshore liquefied natural gas (LNG) production complex to be built in Cabo Delgado, Mozambique include  Fluor Corporation (Fluor)  part of the JFT consortium which has been awarded the engineering, procurement and construction (EPC) worth over $13B.

Notably there has been decreasing influence in the Mozambique Area 1 LNG project (containing more than 60 Tcf of gas resources, of which 18 Tcf will be developed with the first two trains) with the exit of Anadarko which was the operator. French giant Total is now the operator with 26.5%, alongside ENH Rovuma Área Um, S.A. (15%), Mitsui E&P Mozambique Area1 Ltd. (20%), ONGC Videsh Ltd. (10%), Beas Rovuma Energy Mozambique Limited (10%), BPRL Ventures Mozambique B.V. (10%), and PTTEP Mozambique Area 1 Limited (8.5%). The Final Investment Decision (FID) on Mozambique LNG was announced on June 18, 2019, and the project is expected to come into production by 2024.

McDermot another US multinational is also part of the CCS JV awarded the onshore engineering, procurement and construction (EPC) for all components of the onshore LNG development, which includes two LNG trains lus the associated utilities and infrastructure. McDermott’s  initial portion of the EPC contract award was approximately $2 billion.

US company Oceaneering which was awarded a contract by Anadarko to supply umbilicals totaling approximately 115 miles , distribution hardware (umbilical termination assemblies, hydraulic and chemical distribution units, electrical distribution units, flying leads, junction plates, ROV flyable large-bore connectors), and aftermarket services to be manufactured at its facilities in Panama City, Florida and Houston, Texas.