Turning a new leaf: Anadarko’s FID and the potential for inclusive development
News of Anadarko’s FID in Mozambique, announced a few weeks ago, excited many actors within the Indian Ocean Africa and Natural Resource space - but what does it all mean?
Anadarko’s first discovery in Mozambique took place in 2010 representing, by the firm’s own admission, one of the “most important and largest natural gas discoveries in the past 20 years”. The reserve is located in the Rovuma Basin within the province of Cabo Delgado, in the north of the country.
The years since discovery have led to further assessments, progress on a development plan, and negotiations with off-takers further to demand-scoping. Mozambique’s Finance Ministry estimate revenues generated by Anadarko’s LNG project in Rovuma alone to exceed $130 billion over its lifespan.
The journey to decision
Anadarko’s Final Investment Decision (FID) is an approval of the construction of a $20 billion gas liquefaction and export terminal, reported by Reuters to be the largest single LNG project in Africa. Much of total capacity in this project (86%) is already committed by key LNG buyers in Asia and Europe, as reported by Anadarko – a crucial factor in providing assurances to stakeholders with long-term interest.
Following a long period from initial discovery to the assessment of the investment decision, this recent commitment is not only historic for Mozambique’s energy industry, as it can have far-reaching impact for the country’s population. The gas-find and projects such as Anadarko’s can be expected to create significant employment as well as demand for local content, allowing for considerable investment into Cabo Delgado's region, one of Mozambique’s poorest provinces, and beyond.
Diffusing resource benefits
The effects of FID could be catalytic: from de-risking investment into the region for financial services and making SME’s bankable to allowing for long-term employment creation through skills transfers and training opportunities.
Through our presence in the region, we have observed a steep increase in the number of stakeholders that are seeking exposure to Cabo Delgado if not already present. These actors have the opportunity and resources to bring significant community empowerment and prosperity to Mozambique as a whole: and ThirdWay Africa’s thesis of building ecosystems, facilitating conversations and catalysing co-ordination is central to unlocking the power of collaboration amongst players who may not regularly engage with one another.
We are committed to the vision of businesses, communities and ecosystems thriving together: and this vision has great potential for realisation in Cabo Delgado after Anadarko’s historic decision