Anadarko Petroleum has signed a deal with Indonesia’s Pertamina to sell 1 million mt/year of LNG from its planned Mozambique LNG project for a period of 20 years, bringing the project one step closer to a final investment decision, the US-based company said Tuesday.
The deal is the fifth sales agreement signed for the 12.88 million mt/year Mozambique LNG project this month alone, and brings the total SPAs signed to seven, for more than 9.5 million mt/year.
“The Anadarko-led Mozambique LNG project is well positioned to make a sanctioning decision in the first half of this year, as we remain on track to complete the project financing process, secure the necessary approvals, and have executed a sufficient volume of long-term SPAs, which now total more than 9.5 million mt/year,” Anadarko vice president Mitch Ingram said in a statement.
Already this month, Anadarko has agreed deals with India’s BPCL, China’s CNOOC and Anglo-Dutch giant Shell, as well as a joint deal with the UK’s Centrica and Japanese utility Tokyo Gas.
A non-binding heads of agreement was also signed in 2017 with Thailand’s PTT to sell 2.6 million mt/year.
Anadarko is developing Mozambique’s first onshore LNG facility, which will have two LNG trains with a total nameplate capacity of 12.88 million mt/year, to support the development of the Golfinho/Atum field in Offshore Area 1.
Partners in Offshore Area 1 include Anadarko (26.5%), Mitsui (20%), Mozambique’s state-owned Empresa Nacional de Hidrocarbonetos (15%), India’s ONGC Videsh (10%), Beas Rovuma Energy Mozambique Limited (10%), India’s BPCL (10%) and Thailand’s PTT Exploration & Production (8.5%).
Source: S&P Global Platts