Mozambique’s council of ministers approved the development plan for Anadarko Petroleum Corp.’s liquefied natural-gas project in the north of the nation, an investment estimated at about $20 billion.
The government announced the decision in a statement on Tuesday. The next major requirement that the Anadarko-led consortium has to meet before reaching a final investment decision on the Area 1 project is to sign enough sales and purchase agreements, according to the company.
Anadarko and its partners have agreed the price and volumes for 5.1 million tons a year of gas production, out of the 8.5 million tons required to reach financial close, the company said in a statement Tuesday. During the last quarter of 2017, it signed a heads of agreement with Tohoku Electric Power Co. of Japan to sell it gas, the company said.
Exxon Mobil Corp. and Eni SpA are developing another gas project nearby Anadarko’s. The development of Mozambique’s gas deposits could make the southeastern African nation the world’s fourth-biggest natural gas exporter.