Mozambique: Anadarko has enough natural gas contracts to decide on investment

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Mozambique: Anadarko has enough natural gas contracts to decide on investment

8:43 CAT | 20 Feb 2019

In file CoM

U.S. Oil giant Anadarko announced on Tuesday that it has signed a new deal to supply natural gas produced in Mozambique, enabling it to reach its goal to announce a final investment plan in the north of the country.

Anadarko executive vice president Mitch Ingram said a volume of purchase and sale agreements totalling over 9.5 million tonnes per year (mtpa) had been signed.

The aim was fulfilled following a contract entered into by the consortium of Area 1 and Indonesian state energy company PT Pertamina.

Under the agreement, Area 1 will supply the Indonesian state firm will 1 million tonnes of natural liquified gas (LNG) annually for a period of 20 years.

Therefore Mozambique’s LNG project led by Anadarko is “well positioned to make a definite decision in the first half of this year, as we remain on track to complete the project financing process,” Ingram said.

He added that it was hoped that Indonesia would be one of the fastest growing natural gas markets in Asia and that Pertamina would play a fundamental role in attending to Indonesia’s long-term needs.

The consortium already had contracts closed with Japanese company Tokyo Gas and British company Centrica, with a joint contract of 2.6 mpta, Shell (2 mtpa), Chinese estate company CNOOC (1.5 mtpa), EDF – Electricity of France (1.2 mpta) and Japanese company Tohoku (0.3 mtpa) as well as India’s Bharat Petroleum (1 mtpa).

A final investment decision in Area 1 through a public announcement will confirm the total investment in infrastructure already underway for over a year in the Afungi peninsula in the district of Palma, in the northern province of Cabo Delgado.

Attacks by armed groups in the region, which have already killed at least 150 people, have not interrupted the works, which will enable LNG to be processed within four or five years.

The consortium exploring Area 1 is composed of Anadarko (26.5%), Japan’s Mitsui (20%), India’s ONGC (16%), Mozambique’s ENH (15%) and India’s Oil India Limited (4%) and Bharat Petro Resources (10%) as well as Thailand’s PTTEP (8.5%).

Source: Lusa