A joint venture (JV) between Saipem, McDermott International and Chiyoda, called CCS, has secured an engineering, procurement and construction (EPC) contract from Anadarko Petroleum for the onshore Mozambique Area 1 Liquefied Natural Gas (LNG) Development (Mozambique Area 1 LNG project).

Saipem, which will operate as the leader of the JV, has revealed its share of the contract to be around $6bn (£4.73bn), while McDermott said that its initial portion of the award is about $2bn (£1.58bn).

Chiyoda, which is taking part in the JV through its subsidiary Mirai Engineering Italy, didn’t disclose its share of the contract. The Italian company will be responsible for giving specific technical support to the CCS JV for the Mozambique Area 1 LNG project.

The joint venture is already associated with the Mozambican LNG project having provided the front-end engineering design (FEED) services.

McDermott projects group senior vice president Samik Mukherjee said: “The Area 1 Mozambique LNG project will build on McDermott’s industry-leading experience and demonstrate our ability to deliver comprehensive EPC solutions globally for world-scale LNG developments.”

The contract to the JV has been executed by Anadarko Petroleum’s subsidiary Anadarko Moçambique Area 1, which is the operator of the Offshore Area 1 gas project in the Rovuma Basin, located nearly 40km off the northern Mozambican coast.

Mozambique Area 1 LNG project details

The Mozambique Area 1 LNG project, which will have a nameplate capacity of 12.88 million tonnes per annum (MTPA), will support the development of the Golfinho/Atum fields as part of the Offshore Area 1 gas project. The onshore LNG facility is expected to be supplied with nearly 100 million cubic feet of natural gas a day (MMcfd) from the offshore gas project.

The Mozambique Area 1 LNG project will involve construction of two natural gas liquefaction (LNG) trains and also all the required associated infrastructure, storage tanks and export jetty facilities.

The EPC contract awarded to the CCS JV is subject to a full notice to proceed from Anadarko Petroleum once the final investment decision on the Mozambique Area 1 LNG project is made.

Saipem CEO Stefano Cao said: “With this project, we will strengthen our presence in East Africa, confirming Saipem’s role among the leaders in the LNG market for the energy transition.

“A project of such a scale will contribute significantly to the economic growth of Mozambique as a new pole in the west-east energy routes and, as Saipem, we are proud of our substantial contribute to these future developments.”