Anadarko, Tohoku pen Mozambique gas sales deal

US oil and gas company Anadarko, as operator of Mozambique’s offshore Area 1, has signed a deal for LNG supply with Japan’s Tohoku Electric Power company.

The agreement is a confirmation of a Heads of Agreement signed in December 2017, under which Tohoku has pledged to buy a maximum of 0.28 million tonnes per year for 15 years. From the start of production, which is anticipated to occur in the early part of the next decade. The final investment decision is scheduled for 2019.

The deal marks Tohoku’s first long-term agreement to procure liquefied natural gas (LNG) from the African continent, enabling the company to diversify supply sources.

Commenting on the execution of the sale and purchase agreement Mitch Ingram, Anadarko Executive Vice President, International, Deepwater and Exploration said: “Anadarko and our co-venturers in Area 1 are proud to report we have executed an LNG Sale and Purchase Agreement (SPA) with Tohoku Electric Power Company, Inc. for the supply of 0.28 million tonnes of LNG per annum for a period of 15 years.

“This SPA further demonstrates the steady progress we continue to make toward our target of an affirmative final investment decision (FID) during the first half of 2019. It brings together one of Japan’s most important LNG buyers and the Anadarko-operated Mozambique LNG project and affirms our belief that Mozambique LNG will be a cost-competitive, long-term, global LNG supplier. We look forward to serving Tohoku Electric Power Company, Inc. and our growing list of customers.”

The Anadarko-operated Mozambique LNG project will be Mozambique’s first onshore LNG development, initially consisting of two LNG trains with a total nameplate capacity of 12.88 MTPA to support the development of the Golfinho/Atum fields located entirely within Offshore Area 1.

The approval from the government of Mozambique for the Golfinho/Atum field development plan was received in March 2018.

Following the approval, during the second quarter of this year, Anadarko and its Area 1 co-venturers signed a Heads of Agreement with Tokyo Gas and Centrica for long-term LNG off-take of 2.6 MTPA.

Anadarko in 2010 made its first discovery in the Offshore Area 1 of the deep-water Rovuma Basin. So far, the company and its partners have discovered approximately 75 trillion cubic feet (Tcf) of recoverable natural gas resources in Offshore Area 1 and are working to develop what has been labelled as one of the world’s largest LNG projects. - Offshore Energy Today

LEAVE A COMMENT

Comments

image

Poachers have broken into Botswana’s p Read more...

10 Aug, 2018 at 01:58 PM

image

In a sign that Botswana is likely to cli Read more...

02 Jul, 2018 at 09:26 AM

image

DAR ES SALAAM - DIRECTIVES on online for Read more...

02 Jul, 2018 at 01:24 PM

image

Gaborone - Poachers have broken into Bot Read more...

04 Feb, 2019 at 07:35 AM

image

Gaborone – The Botswana government has Read more...

25 May, 2018 at 02:35 PM

image

Windhoek - SADC member states should pri Read more...

03 Jun, 2019 at 10:42 PM

image

Windhoek - SADC chairperson Dr Hage Gein Read more...

03 Jun, 2019 at 10:37 PM

image

Windhoek - Namibia and Tanzania should b Read more...

03 Jun, 2019 at 10:23 PM

image

Windhoek - The SADC region has a power d Read more...

03 Jun, 2019 at 09:02 PM

image

Lilongwe - Democratic Progressive Party Read more...

03 Jun, 2019 at 08:59 PM

image

Windhoek - Namibia’s road network, ran Read more...

04 Mar, 2019 at 10:11 AM

image

Lusaka - Amid myriad criticisms from soc Read more...

14 Dec, 2018 at 06:28 AM

image

Heads of state and ministers who travell Read more...

30 Jul, 2018 at 02:01 PM

image

Windhoek - The European Union National I Read more...

01 Apr, 2019 at 12:33 PM

image

Trevor Noah is very well-known as a stan Read more...

26 Oct, 2018 at 11:00 AM