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    Anadarko Inks SPA with Cnooc for Mozambican LNG

Summary

A final investment decision for the Mozambique LNG project is expected in the first half of this year.

by: Shardul Sharma

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Anadarko Inks SPA with Cnooc for Mozambican LNG

Anadarko Petroleum February 1 announced it has signed an agreement to supply LNG from Mozambique to Cnooc Gas and Power Singapore Trading & Marketing, a unit of Chinese state owned Cnooc.

Mozambique LNG1 Company, the jointly owned sales entity of the Mozambique Area 1 co-venturers, has signed a sale and purchase agreement (SPA) with Cnooc Gas and Power Singapore Trading & Marketing. The SPA is for 1.5mn mt/yr for a term of 13 years, Anadarko said.

"This deal gives China's largest LNG importer access to Mozambique LNG's world-class gas resources, which are strategically located off the East Coast of Africa, and will provide China with a clean source of energy for years to come,” said Mitch Ingram, Anadarko executive vice president, International, Deepwater & Exploration, adding he expects to announce further SPAs in the near future.

The Anadarko-operated Mozambique LNG project will 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 located entirely within Offshore Area 1. A final investment decision for the project is expected in the first half of this year. 

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 PTTEP Mozambique Area 1 (8.5%).