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Consulting firm IHS Markit has said that Anadarko’s agreement to supply Mozambique’s liquefied natural gas (LNG) to Japan’s Tokyo Gas and the UK’s Centrica helps buyers manage uncertainty in the markets.
“The joint agreement is an innovative approach that will help buyers manage uncertainty in the markets,” analyst James Taverner said in a statement to Bloomberg.
“Japanese buyers have been looking for more flexibility in their portfolios to allow them to better balance their own needs and sell excess volume to other markets,” he added, noting that this was good news for Mozambique because it allowed Anadarko to move forward with its final investment decision, scheduled for next year.
Anadarko announced the signing of a joint agreement for the supply of LNG from Mozambique to Japan’s Tokyo Gas and Britain’s Centrica on Friday.
“The co-purchasing off-take agreement calls for the delivered ex-ship supply of 2.6 million tonnes per annum from the start of production until the early 2040s,” the statement reveals.
The agreement represents a huge weight on the target set for the final investment decision, which was already expected by the Mozambican government in 2017.
“The innovative co-purchasing arrangement provides flexibility to assist both customers in proactively managing demand fluctuations in their own home markets,” Anadarko’s executive vice president for the International Area said in a statement. The company would take advantage of Mozambique’s favourable central location to supply customers in both the European and Asian-Pacific markets, he added.
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