Anadarko signs LNG agreement with Bharat – AIM report

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Anadarko signs LNG agreement with Bharat – AIM report

10:15 CAT | 19 Feb 2019

In file CoM

The Texas-based Anadarko Petroleum Corporation on Friday announced that Mozambique LNG1 Company Pte Ltd has signed an agreement with the Indian company Bharat Gas Resources Ltd for the supply of LNG (Liquefied Natural Gas) from the northern Mozambican province of Cabo Delgado. Under the agreement, Bharat will purchase one million tonnes per annum (MTPA) of LNG over a period of fifteen years.

Mozambique LNG1 is owned by Anadarko and its partners in the consortium which is developing the infrastructure to extract and process natural gas from Offshore Area One in the Rovuma Basin.

According to Mitch Ingram, Anadarko Executive Vice President, International, Deepwater and Exploration, “with this agreement, Mozambique LNG now has executed more than 8.5 MTPA of Sales and Purchas Agreements”.

He added. “India’s role in the global LNG market will continue to grow with Mozambique LNG being a natural supplier given its geographic proximity and thirty per cent Indian state-owned interest in Mozambique LNG”.

Anadarko and its partners are now close to reaching their Final Investment Decision for the Mozambique LNG1 project. Once taken, the consortium will be able to approach financial institutions to raise the funds to begin construction of the LNG plant.

Offshore Area One is estimated to hold 75 trillion cubic feet of recoverable natural gas. To monetise the gas Anadarko will pipe it to Palma in the north of Cabo Delgado province where it will be liquefied and shipped to clients worldwide.

The Mozambique LNG1 project will be the country’s first onshore LNG development. It will initially consist of two LNG factories (known as “trains”) with the capacity to produce a total of 12.88 million tonnes of LNG per year. Anadarko plans to expand the project in stages up to a maximum of 50 million tonnes a year. In addition, Area One will supply 100 million cubic feet of natural gas per day for domestic use in Mozambique.

The project is currently on schedule to begin LNG production in 2024. However, it will not be the first project to produce LNG from the Rovuma Area. The consortium operating Offshore Area Four of the basin, headed by the Italian energy company ENI, has opted to build a floating LNG unit that will sit on a platform above the Coral South Field, with production due to begin by 2022.

Anadarko is the operator of Offshore Area One with a 26.5 per cent working interest. Its partners are Mozambique’s National Hydrocarbon Company ENH (15 per cent), the Japanese company Mitsui (20 per cent), the Indian companies ONGC Videsh Ltd, Beas Rovuma Energy Mozambique Ltd and BPRL Ventures Mozambique (with 10 per cent each), and PTTEP of Thailand (8.5 per cent).

Both Bharat Petroresources Limited (BPRL) and Bharat Gas Resources Ltd are subsidiaries of the Indian state-owned Bharat Petroleum Corporation Ltd.

Source: AIM