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SPAs for Anadarko-Led Mozambique LNG Accelerating

Indonesia’s state-owned Pertamina on Tuesday became the latest buyer to step up to support the Anadarko Petroleum Corp.-led Mozambique natural gas export project, agreeing to take 1 million metric tons/year (mmty) for 20 years.

Mozambique LNG1 Co. Pte. Ltd., the jointly owned sales entity of the Mozambique Area 1 co-venturers, signed a sale and purchase agreement (SPA) with Pertamina to help supply Indonesia with needed liquefied natural gas (LNG) supply, said Anadarko Executive Vice President Mitch Ingram, who handles international, deepwater and exploration.

"Indonesia is expected to be one of the fastest growing natural gas markets in Asia and Pertamina, the national energy company of Indonesia, will play a key role in meeting Indonesia's long-term energy needs," he said.

"The Anadarko-led Mozambique LNG project is well positioned to make a sanctioning decision in the first half of this year, as we remain on track to complete the project financing process, secure the necessary approvals, and have executed a sufficient volume of long-term SPAs, which now total more than 9.5 mmty.”

Mozambique's first onshore LNG facility would consist of two initial trains with a total nameplate capacity of 12.88 mmty to support development of the Golfinho/Atum field that is entirely within Offshore Area 1.

Last week a unit of India’s Bharat Gas Resources Ltd. signed a SPA to take 1 mmty for 15 years. Earlier this month Shell International Trading Middle East Ltd. agreed to take 2 mmty for 13 years, while Tokyo Gas Co. Ltd., the largest city gas provider in Japan, and Centrica LNG Co. Ltd., a subsidiary of UK-based Centrica Ltd., agreed to jointly purchase 2.6 mmty until the “early 2040s.” A SPA also has been secured with China’s CNOOC Gas and Power Singapore Trading & Marketing Pte. Ltd., which agreed to buy 1.5 mmty for 13 years.

The separate Coral South LNG export project sponsored by Eni SpA and ExxonMobil Corp. was sanctioned last year. Together, Coral and the Anadarko project could make Mozambique the world’s fourth-largest gas exporter.

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