LNG greenfield investment in 2019 will reach nearly $103 billion

Rystad Energy forecasts LNG greenfield investment in 2019 will reach nearly $103 billion, the largest investment year for the industry to date.

Africa will be taking the lead in the next phase of global LNG mega-projects according to Rystad Energy. Mozambique’s Area 1 and Area 4 projects will make Africa the dominant LNG investment destination in 2019 with nearly one-third of total greenfield investment. Mozambique Area 4 is expected to make final investment decision (FID) from ExxonMobil by the end of this year.

“Last week’s final investment decision by Anadarko for its Area 1 LNG project marks the beginning of a new phase for not only Mozambique and the African continent, but for the industry as a whole,” says Pranav Joshi, analyst on Rystad Energy’s Upstream team.

According to Rystad Energy the greenfield capex for the Area 1 project is estimated at $15.6 billion. If ExxonMobil’s Area 4 does reach FID this year, that will represent another $14.7 billion in greenfield expenditure in Africa. The yearly total would then be 28% of the global tally for approved investments in newly sanctioned LNG projects.