PTTEP to Invest $1.5 bn in Mozambique LNG Project

PTTEP is willing to invest about $1.5 bn in the Mozambique LNG project after the joint venture secured orders for 8 million tons of LNG a year, The Nation newspaper reported Thursday.

Company’s chief executive officer Tevin Vongvanich said the company's investment plan for 2015 and 2016 on the further development of petroleum fields would involve LNG production in Rovuma offshore basin Area 1 in Mozambique. 

The Thai firm has 8.5 percent equity stake in the project and would contribute is share of around $1.5 bn over the period of four or five years, The Nation said. Total investment in the project will be about $20 billion, including the construction of an onshore LNG plant.

The project is expected to produce about 12 million tons of LNG annually from Area 1 and has already secured long-term contracts for 8 million tonnes of LNG a year. The remaining 4 million tonnes of annual output could be sold in the spot market. 

As for the land-based LNG production plant, Anadarko, the majority shareholder in the project, has already selected a construction contractor; construction of the plant is expected to begin soon.