ADNOC Acquires 10% Stake in Mozambique Gas Project.Â
In a significant move bolstering its international gas footprint, Abu Dhabi National Oil Company (ADNOC) has acquired a 10% stake in the Area 4 concession of Mozambique’s Rovuma basin, marking its fourth venture into the global gas market. The deal, announced on Wednesday, follows closely on the heels of ADNOC’s recent acquisition of an 11.7% stake in NextDecade’s Rio Grande liquefied natural gas (LNG) export facility in Texas.
With ambitions to become a major player in the gas and LNG sector, ADNOC views gas, along with renewable energy and petrochemicals, as key pillars for its future growth strategy. The company aims to expand its LNG capacity from 6 million metric tons per annum (mtpa) to 15 mtpa, riding the wave of surging demand for natural gas, particularly in Europe seeking alternatives to Russian gas in the aftermath of geopolitical tensions.
Galp, the seller in this transaction, anticipates receiving approximately $650 million for its shares and shareholder loans upon completion of the deal, expected later this year. Additionally, Galp stands to gain further contingent payments of $100 million and $400 million upon the final investment decisions for the Coral North and Rovuma LNG projects, respectively.
The Area 4 concession comprises the operational Coral South Floating LNG (FLNG) facility, as well as the forthcoming Coral North FLNG development and Rovuma LNG onshore facilities. Coral South currently boasts a production capacity of 3.5 mtpa, with Coral North expected to add another 3.5 mtpa, and the onshore Rovuma development slated to produce 18 mtpa upon completion.
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ADNOC’s investment aligns with its broader strategy to expand its lower-carbon LNG portfolio and support the global energy transition. Gas is viewed as a transitional fuel as countries move towards renewable energy sources, a sentiment underscored by ADNOC Chief Executive Sultan Al Jaber’s leadership at the COP28 climate summit in Dubai last year.
This acquisition in Mozambique comes on the heels of ADNOC‘s ventures in Egypt and Azerbaijan, further solidifying its position as a global player in the gas market. Additionally, ADNOC is advancing its domestic LNG ambitions with a 9.6-mtpa LNG project in Ruwais, UAE, slated to commence commercial operations in 2028.
