Mozambique: LNG Development Mc Dermott Receives Contract for EPC and Storage Tanks Worth Two Billion Dollars

Editor: Alexander Stark

Mc Dermott announced that CCS JV, a joint venture between Mc Dermott, Saipem and Chiyoda, has reached full agreement for a contract with Anadarko Petroleum Corporation for the Mozambique Area 1 Liquefied Natural Gas (LNG) Development.

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The large-scale project is significant for Mozambique and global LNG industry. (symbolic image)
The large-scale project is significant for Mozambique and global LNG industry. (symbolic image)
(Source: CC0 / Pixabay )

Houston/USA — CCS JV's project scope includes the onshore engineering, procurement and construction (EPC) for all components of the onshore LNG development, which includes two LNG trains with a total nameplate capacity of 12.88 million tonnes per annum (MTPA), plus the associated utilities and infrastructure. Previously, CCS JV provided front-end engineering design (Feed) services for this LNG development. Mc Dermott's initial portion of the EPC contract award is approximately $ 2 billion.

The engineering company and Saipem have established a new office in Milan, Italy, where a team from both companies will lead the project management, engineering and procurement in advance of sharing on-site construction management responsibilities. Mc Dermott will perform engineering from both London and Gurgaon, India. Chiyoda will only provide advisory services for the joint venture. Work at the site is expected to commence when Anadarko issues a Notice to Proceed after it takes a Final Investment Decision (FID).

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As the operator of Offshore Area 1, Anadarko is the primary project sponsor. Additional sponsors include ENH Rovuma Área Um, Mitsui E&P Mozambique Area 1, ONGC Videsh, Beas Rovuma Energy Mozambique Limited, BPRL Ventures Mozambique, and PTTEP Mozambique Area 1.