Trump’s administration has few months to complete its tenure but Africa appears the last bait of his administration. In a landmark investment, Trump’s administration is backing the largest-ever U.S. source investment in Africa as the Houston-based Fortune 500 oil and gas independent Anadarko Petroleum Corp. invests in $20 billion Liquefied Natural Gas project in Mozambique.
The Terms Of The Deal
- The project when completed would be Mozambique’s first onshore LNG development, initially consisting of two LNG trains with a total capacity of 12.88 million tons annually.
- Liquefied natural gas is natural gas that has been cooled down to liquid form for ease and safety of non-pressurized storage or transport.
- The project will support the development of the Golfinho-Atum natural gas fields located offshore in the Rovuma basis on the northern coast of Mozambique in the Indian Ocean.
- According to the Mozambique government, the project will initially supply volumes of approximately 100 million cubic feet of natural gas per day for domestic sales in Mozambique and key LNG buyers in Asia and Europe.
- As of year-end 2018, Anadarko had revenues exceeding $13 billion and produced nearly 1.47 billion barrels-equivalent of proved reserves, making it one of the world’s largest independent oil and gas exploration and production companies. Last month, Anadarko agreed to be acquired by Los Angeles-based Occident in a cash-and-stock deal.
Why the US Is Getting Involved?
Although the U.S. Deputy Secretary of Commerce Karen Dunn Kelley led a delegation of U.S. government officials to witness the historic $20 billion signing ceremony by Anadarko and the government of Mozambique to construct a Liquified Natural Gas (LNG) terminal just off the coast of the southeast African nation. It appears the U.S is rather coming when China has already taken over the business landscape of the continent.
Trump administration officials said involvement in the Mozambique project and the Commerce Department-led delegation’s trip to the African nation underscores America’s commitment to expanding trade, investment and commercial ties between the two countries and the Sub-Saharan African region.
“The Trump Administration is committed to increasing trade with African nations where all can reap the benefits of new investments and economic growth,” Kelley said. “American companies and products set the standard in the international market and the historic deal signing between Anadarko Petroleum and the Government of Mozambique reaffirms the goal of achieving long term economic development throughout the region.”
Chinese President Xi Jinping recently pledged $60bn in financial aid to Africa and promised to write off debt for the country’s poorer nations. China has been Africa’s biggest trading partner over the past decade.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based Lawyer with special focus on Business Law, Intellectual Property Rights, Entertainment and Technology Law. He is also an award-winning writer. Working for notable organizations so far has exposed him to some of industry best practices in business, finance strategies, law, dispute resolution, and data analytics both in Nigeria and across the world.