Africa takes the lead in record-year for LNG

June 27, 2019

Africa is taking the lead in the next phase of global LNG mega-projects. 2019 will shatter previous records for the industry.

Rystad Energy forecasts that LNG greenfield investment in 2019 will reach nearly $103 billion, the biggest investment year for the burgeoning industry to date.

Mozambique’s Area 1 and Area 4 projects, the latter of which is expected to secure a final investment decision (FID) from operator ExxonMobil by the end of the year, are making Africa the dominant LNG investment destination this year, with nearly one-third of total greenfield investment.

“Last week’s final investment decision by Anadarko for its Area 1 LNG project marks the beginning of a new phase for not only Mozambique and the African continent, but for the industry as a whole,” says Pranav Joshi, analyst on Rystad Energy’s Upstream team.

The greenfield capex for the Area 1 project is estimated at $15.6 billion, putting the project in the same league as the major LNG developments in the US, Russia and Australia. If ExxonMobil’s Area 4 does indeed reach FID this year, that will represent another $14.7 billion in greenfield expenditure in Africa, bringing the yearly total to 28% of the global tally for approved investments in newly sanctioned LNG projects.   

“Area 1 is the largest LNG project that has been sanctioned in Africa to date and will also kick start the wave of sanctioning activity of other bigger LNG projects this year,” Joshi added.

20190627_PR Chart LNG total greenfield investments by year 2015-2021.jpg

Learn more about UCube.


The Area 1 project – expected to start in 2024 and produce 12.88 million tonnes per annum (tpa) – will transform Mozambique into a major LNG exporter. A swath of other projects will also contribute to the to the meteoric growth in domestic gas production.

20190627_PR Chart Mozamique gas production profile project 2019-2030.JPG

Among the projects anticipated to reach FID in 2019, Area 1 is the third largest in terms of greenfield investment. The Arctic LNG project has the largest greenfield capital investment at $25.75 billion, followed by Qatargas LNG with $17.5 billion.

20190627_PR Chart LNG projects for approval 2019-2020.JPG

###


Contacts
Pranav Joshi
Analyst, Upstream Research
Phone: +919943130032
Pranav.Joshi@rystadenergy.com


Morten Bertelsen
Media Relations
Phone: +47 951 98 742
morten.bertelsen@rystadenergy.com


About Rystad Energy

Rystad Energy is an independent energy research and business intelligence company providing data, tools, analytics and consultancy services to the global energy industry. Our products and services cover energy fundamentals and the global and regional upstream, oilfield services and renewable energy industries, tailored to analysts, managers and executives alike. Rystad Energy’s headquarters are located in Oslo, Norway with offices in London, New York, Houston, Stavanger, Moscow, Rio de Janeiro, Singapore, Bangalore, Tokyo, Sydney and Dubai.