Adnoc’s XRG seals a 10% stake in African gas projects

• XRG deal with Galp Energia
• LNG projects with 25mtpa
• Rovuma basin in Mozambique

XRG, the low-carbon energy and chemicals investment arm of Abu Dhabi National Oil Company (Adnoc), has completed its acquisition of a 10 percent stake from Portugal’s Galp Energia in the Rovuma basin concession in Mozambique.

The Rovuma basin, one of the largest gas discoveries in the past 15 years, offers XRG access to liquefied natural gas (LNG) projects with a combined potential production capacity of more than 25 million tonnes per annum (mtpa).

The value of the deal was not disclosed.

The acquisition includes stakes in the operational Coral South Floating LNG, the planned Coral North Floating LNG and Rovuma LNG’s onshore development projects.

Coral South Floating LNG, the first development of its kind deployed in African waters, has a capacity to produce 3.5 million tonnes per annum (mtpa) of LNG. 

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Coral North FLNG, which is due a final investment decision, would produce an additional 3.5 mtpa of LNG offshore. Both offshore projects are led by Italian multinational energy company Eni.

The onshore Rovuma LNG Phase 1 Project, led by ExxonMobil, is expected to complete its front-end engineering design phase this year.

Adnoc says XRG has $80 billion in assets, with a mandate to pursue global deals in chemicals, natural gas and renewables as Abu Dhabi diversifes its revenue stream away from a reliance on oil exports.

The aim is to more than double the value of its assets over the next decade.