Anadarko finalizes further gas offtake deals for LNG project in Mozambique

U.S. oil and gas company Anadarko is in talks to finalize further gas sales deals from its soon to be sanctioned Mozambique LNG project, aimed at developing offshore gas fields in the Offshore Area 1.

Anadarko, a takeover target of Oxy and Chevron, has so far announced Sale and Purchase Agreements (SPAs) totaling more than 9.5 million tonnes of LNG per annum from its Mozambique project.

In an update on Thursday, Anadarko said it continued to make significant progress with its Mozambique LNG project […] with two additional SPAs in the final stages of execution that, if executed, would bring the total volume to more than 11 MTPA.

“During the [first] quarter, the project also was designated as the first mover by the Government of Mozambique for the marine facilities to support the onshore LNG industry in Mozambique. The company remains positioned to take a final investment decision (FID) during the first half of this year,” Anadarko said.

Anadarko is developing Mozambique’s first onshore LNG facility consisting of two initial LNG trains with a total nameplate capacity of 12.88 MTPA to support the development of the Golfinho/Atum field located within Mozambique’s Offshore Area 1. The Golfinho/Atum Project will supply initial volumes of approximately 100 million cubic feet of natural gas per day (MMcf/d) (50 MMcf/d per train) for domestic use in Mozambique.

The company has recently signed several LNG offtake agreements in preparation for the Final Investment Decision for the project. The buyers include  CNOOC, Tokyo Gas, Centrica, Shell, Tohoku, Bharat, and EDF.

Reuters had in February reported that the FID for Anadarko’s massive offshore natural gas block in Mozambique was expected to ready by March or April, citing the chairman of Mozambique’s national oil company ENH.

This was the first time any of the seven partners in the offshore block had given a specific timeline regarding an investment plan for the block, but unless the FID is made in the next four days, the forecast will prove to have been incorrect.

Anadarko Moçambique Área 1, Lda, a subsidiary of Anadarko Petroleum, operates Offshore Area 1 with a 26.5-percent working interest. Co-venturers include ENH Rovuma Área Um, S.A. (15 percent), Mitsui E&P Mozambique Area1 Ltd. (20 percent), ONGC Videsh (10 percent), Beas Rovuma Energy Mozambique Limited (10 percent), BPRL Ventures Mozambique B.V. (10 percent), and PTTEP Mozambique Area 1 Limited (8.5 percent).

 

Source: Offshore Energy

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