• Natural Gas News

    Anadarko Inks More SPAs for Mozambican LNG

Summary

The Anadarko-operated Mozambique LNG project may be Mozambique's first onshore LNG development.

by: Shardul Sharma

Posted in:

Natural Gas and LNG Latest & Breaking News, Africa, Americas, Asia/Oceania, Europe, Security of Supply, Corporate, Exploration & Production, Import/Export, Investments, Liquified Natural Gas (LNG), News By Country, Mozambique

Anadarko Inks More SPAs for Mozambican LNG

Anadarko said February 5 it has signed sale and purchase agreements to supply Mozambican LNG to Shell, Tokyo Gas and Centrica.

Mozambique LNG1 Company, the jointly owned sales entity of the Mozambique Area 1 co-venturers, has signed a 13-year deal with Shell International Trading Middle East to supply 2mn mt/yr of LNG. 

"We are very pleased to announce this SPA with Shell, which builds upon previously announced deals and takes our total long-term sales to more than 7.5mn mt/yr, with additional deals expected in the near future," said Mitch Ingram, Anadarko’s executive vice president.

Mozambique LNG1 Company has signed another SPA with Tokyo Gas and Centrica LNG. The joint purchasing agreement calls for the delivered ex-ship supply of 2.6mn mt/yr from the start-up of production until the early 2040s, Anadarko said.

“This innovative co-purchasing agreement with Tokyo Gas and Centrica will ensure a reliable supply of clean-burning natural gas to help meet the energy demands of Japan and Europe. It signals the beginning of a new and lasting relationship between Mozambique's first onshore LNG development and these two prominent and respected foundation customers," Ingram said.

Centrica said the "innovative joint procurement approach takes full advantage of Mozambique’s central location between Europe and Asia, assisting both companies to access diverse markets and proactively manage demand fluctuations across regions with different market dynamics."

UK trade minister Liam Fox said he was "delighted that Centrica has agreed this strategic and innovative partnership with Tokyo Gas. The deal is a fantastic example of the UK’s position as a leader in the global energy markets." He said he was pleased that his "international economic department had been able to support a major UK business in expanding its international presence.”

Last week, Anadarko signed an agreement with China's Cnooc to supply 1.5mn mt/yr for a term of 13 years.  

The Anadarko-operated Mozambique LNG project might be Mozambique's first onshore LNG development, initially consisting of two LNG trains with total nameplate capacity of 12.88mn mt/yr to support the development of the Golfinho/Atum fields entirely within Offshore Area 1. A final investment decision for the project is expected in the first half of this year. 

There is another LNG project, Rovuma LNG, operated by Italian Eni (upstream) and ExxonMobil (midstream), which has sold out its cargoes, with the partners also the buyers. But it has not yet formally announced FID either.

Anadarko Mozambique Area 1, a wholly owned subsidiary of Anadarko, operates Offshore Area 1 with a 26.5% working interest. Co-venturers include ENH Rovuma Area Um (15%), Mitsui E&P Mozambique Area1 (20%), ONGC Videsh (10%), Beas Rovuma Energy Mozambique (10%), BPRL Ventures Mozambique (10%), and Thai PTTEP Mozambique Area 1 (8.5%). Shell had tried to buy a stake in the project company from Cove, but was outbid by the Thai upstream company.