Mota-Engil, Besix score Mozambique LNG deal

The Mozambican government is even going to move forward with the Liquefied Natural Gas project with which it wants to transform the Cabo Delgado peninsula into one of the world’s largest gas producers.
At a time when the news coming from that territory gives an account of attacks by jihadists who intend to create a state governed by Quranic law in northern Mozambique, the Mozambican state will even proceed with the project and the construction company Mota-Engil has just announced that it was one of the chosen ones to ensure a first phase of the works.
According to communication sent to the Securities Market Commission (CMVM), Mota-Engil integrates a 50/50 partnership with the Belgian company Besix, specialized in maritime works, which will ensure the construction of a pier bridge and a platform for material unloading, which involves an investment of 350 million dollars (323 million euros at the current exchange rate).
In total, the LNG project involves an investment of US $ 50 billion (€ 46.17 billion), and two consortia are already formed for its development.
Area 1, operated by Total Mozambique, after acquiring in 2019 from the North American Anadarko, and Area 4, operated by a consortium with Exxon Mobile, ENI and Galp. In the case of Area 4, Exxon announced earlier this month the postponement of the final investment decision, as part of a savings program to address the economic effects of the new coronavirus pandemic.
The engineering, procurement and construction contractor onshore of the development of Area 1 Mozambique LNG from Total Mozambique is CCS JV. It was CCS JV who delivered this first contract to Mota-Engil, with Besix partners.
CCS JV participated in more than 40% of LNG projects worldwide, and this is the first time that it has delivered a contract to Mota-Engil Mozambique, present in that country since 1991. The Portuguese construction company’s aim is to be selected for future contracts related to the LNG project.
Of the 50 billion dollars announced as a necessary investment for this mega project, it is estimated that around 15% are related to civil construction work, earthworks, construction of shipyards, construction and improvement of access, new docks and platforms. In other words, construction companies have an investment potential of US $ 7.5 billion by 2024-2025.