12 °c
London
Wednesday, August 17, 2022
No Result
View All Result
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About
No Result
View All Result
FurtherAfrica
No Result
View All Result
Home Africa

As Anadarko agrees Mozambique LNG sale, banks discuss finance terms

FurtherAfrica by FurtherAfrica
February 22, 2018
in Africa, Banking, Commodities, Economy, FDI, Finance, Gas, Mozambique, Natural Resources
Reading Time: 2 mins read
1.4k 29
0
Angola Development Bank assesses disbursement conditions of Kz4.5B
Share via QRWhatsappShare on FacebookShare on TwitterLinkedInPinteresteMail

Anadarko Petroleum’s plan to export liquefied natural gas (LNG) from Mozambique moved a step closer to completion on Tuesday after it agreed a 15-year LNG sales and purchase agreement (SPA) with Electricite de France.

France’s state-controlled utility will take 1.2 million tonnes of LNG annually from the Mozambique Area 1 marketing venture led by Anadarko and consisting of Japanese trader Mitsui, India’s ONGC Videsh and Thailand’s PTT, among others.

In all Anadarko has agreed commercial terms including volume and price for 5.1 million tonnes per annum (mtpa) of LNG off-take deals from Mozambique, closing in on its 8.1 mtpa target needed to trigger a final investment decision (FID), said company spokeswoman Helen Wells.

The Texas-based energy company plans to build a plant estimated to cost around $15 billion and start exporting LNG drawn from vast finds in Mozambique’s offshore Area 1 block from 2022 or 2023.

Deals so far include Anadarko’s first binding SPA with EDF as well as an earlier SPA with Thailand’s state-run PTT that is still undergoing government approvals. There is also a preliminary deal with Japanese utility Tohoku Electric.

“Additionally, we are in advanced negotiations with a variety of buyers to meet our FID target,” Wells said.

The choice of European customer diversifies Anadarko’s Asia-weighted supply offering and could see east African LNG flowing into the region’s terminals as declining indigenous gas production makes Europe more reliant on imports, especially Russian piped gas.

“Reaching this SPA continues to validate Mozambique LNG’s position as a competitive long-term LNG supplier and as one of the world’s leading greenfield projects,” said Mitch Ingram, Anadarko’s executive vice president of International and Deepwater Operations and Project Management.

LNG project developers across the board have struggled to find the long-term buyers needed before banks and export credit agencies could commit financing for new plants.

Low oil prices, surging global LNG output and buyer’s demands for flexibility, shorter contract terms and competitive pricing have challenged the profitability of many projects and delayed investments in new ones.

Anadarko’s SPAs hint at a potential thaw in buyer-seller relations and a chance at becoming the first major East African LNG project to reach FID just as rising demand lifts prices and encourages investments in new supply.

 The tug-of-war between buyers and sellers has unsettled lenders. A typical financing model asked buyers to pay for a plant’s entire output over 25-years, thereby guaranteeing returns on loans.

Buyers’ growing rejection of this model has led to calls for shorter terms, smaller volumes and flexibility to adjust or divert supply as circumstances change, making it harder for banks to commit funds in light of new project risks.

“With regards to our project financing efforts, lenders are keenly engaged and have indicated a willingness to support the initial project with the necessary levels of project finance commitments,” Wells said. “We are actively negotiating the terms and conditions of the financing.”

Source: Reuters

Related

Tags: AnadarkoArea 1EDFÉlectricité de FranceFeatureFIDGasHelen WellsLNGMitsuiMozambiqueONGC VideshPTTSPATohoku Electricモザンビーク莫桑比克
ScanSendShare588Tweet367Share103Pin132Send
FurtherAfrica

FurtherAfrica

Founded in 2015 FurtherAfrica is an online platform centralising news and content focusing on the development and growth story of the African continent.

Related Posts

Kariba Dam rehabilitation commences
Government

Angola promotes approach to public policy evaluation system

by FurtherAfrica
August 17, 2022
Economy

Mozambique economy grew 4.37% in H1

by Club of Mozambique
August 17, 2022
Economic Diplomacy and Diaspora as a driver for growth and internationalisation
Interview

Economic Diplomacy and Diaspora as a driver for growth and internationalisation

by Elizabeth Khumalo
August 17, 2022
AfCFTA to help Africa rebuild after virus, even if delayed
Trade

How easy is it to do cross border trade in Africa?

by The Exchange
August 17, 2022
Economy

Mozambique economic stimulus measures renew businesses confidence

by Club of Mozambique
August 17, 2022
Angola Oil & Gas 2022
 
AFSIC 2022
 
Great Limpopo Transfrontier Park
 
MozParks

Translate this page

Read the Latest

Kariba Dam rehabilitation commences
Government

Angola promotes approach to public policy evaluation system

by FurtherAfrica
August 17, 2022
0

The Public Policy Assessment system, with the aim of developing skills for analytical exploration and other procedural methods, was one...

Read more

Mozambique economy grew 4.37% in H1

August 17, 2022
Economic Diplomacy and Diaspora as a driver for growth and internationalisation

Economic Diplomacy and Diaspora as a driver for growth and internationalisation

August 17, 2022
AfCFTA to help Africa rebuild after virus, even if delayed

How easy is it to do cross border trade in Africa?

August 17, 2022

Mozambique economic stimulus measures renew businesses confidence

August 17, 2022

FurtherAfrica Partners Network

The Exchange Club of Mozambique Taarifa Rwanda
TechGist Africa Africa Oil & Power Farmers Review Africa
Tanzania Invest Zambia Invest See Africa Today
Africa Global Funds Novafrica CrudeMix Africa
Harambee Africa Botswana unplugged Financial Insights Zambia
Digilogic Africa Web3Africa

Subscribe to FurtherAfrica

Enter your email address to receive new articles on your email.

Join 100,544 other subscribers.

FurtherAfrica

© 2021 FurtherMarkets

FurtherAfrica is a FurtherMarkets Limited platform

  • Countries
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About

Follow Us

No Result
View All Result
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • Interviews
  • Understanding
  • Videos
  • Travel
  • Weekend
  • About

© 2021 FurtherMarkets

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?