Woodlands-based Anadarko said Tuesday it made “meaningful progress” with its giant liquefied natural gas (LNG) export project in Mozambique.
The US company said in its fourth-quarter report it completed the legal and contractual framework and began the resettlement process to prepare the onshore location for the future LNG park.
Anadarko said previously it was in talks to secure long-term LNG contracts and was boosting efforts to put in place the necessary financing for the project.
The company last year reached a 20-year sales and purchase agreement for 2.6 million tonnes of LNG per year with Thailand’s PTT. Japan’s Tohoku also signed a basic agreement to buy up to 280,000 tonnes per year of LNG from the Mozambique project for a period of 15 years.
Once the supply deals and financing are in place, the company expects to take a final investment decision (FID).
Anadarko and its partners have discovered more than 75 Tcf of natural gas resources in the Prosperidade and Golfinho/Atum complexes in Mozambique’s Offshore Area 1, which will be used to feed an onshore LNG terminal on the Afungi peninsula in Cabo Delgado province.
The discovered reserves in Mozambique are sufficient to support two initial LNG trains, each with a capacity of 6 mtpa, as well as to accommodate expansions, including additional trains capable of producing about 50 mtpa, according to Anadarko.
Besides Anadarko, partners in the Mozambique LNG project are Empresa Nacional de Hidrocarbonetos (ENH), Mitsui E&P Mozambique Area1, ONGC Videsh, Bharat PetroResources, PTT Exploration & Production and Oil India.
LNG World News Staff