Africa Gas Mozambique Natural Resources Trade

Japan’s Tohoku Electric to buy up to 280,000 mt/year Mozambique LNG

Tokyo — Japan’s Tohoku Electric said Monday it has signed a sales an purchase agreement to buy up to 280,000 mt a year of LNG from the Anadarko-led Mozambique project, marking its first long-term procurement of the fuel from Africa.

Tohoku Electric said it expects to purchase LNG from the Mozambique LNG project on an ex-ship basis for 15 years when it comes onstream in the early 2020s.

The Sendai-based power utility said that the Mozambique LNG supply will not only help diversify its supply sources but also improve its supply stability and economics.

It added that its Mozambique LNG contract has some flexibility in its lifting volumes, which allows it to change its procurement volumes, depending on its LNG supply and demand balance.

Tohoku Electric’s signing of the SPA with the Mozambique LNG project follows its signing of a heads of agreement on December 15, 2017.

Anadarko said in September that it remains on target for a final investment decision for trains 1 and 2 of the Mozambique LNG project, in which it has a 26.5% stake, in the first half of 2019.

Construction is expected to start by the end of 2019, with first LNG by 2023.

The FID timeframe was announced earlier this year, after sales deals with the UK’s Centrica and Japan’s Tokyo Gas lent significant momentum to the project.

Mozambique LNG will initially consist of two LNG trains with total nameplate capacity of 12.88 million mt/year to support the development of the Golfinho/Atum fields located entirely within Offshore Area 1.

Source: S&P Global

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