Mozambique LNG1 Co. Pte. Ltd. on Friday announced it has another natural gas supply agreement for the proposed export project led by Anadarko Petroleum Corp.
A unit of Bharat Petroleum Corp. Ltd. (BPCL), Bharat Gas Resources Ltd., signed a sale and purchase agreement (SPA) to take 1 million metric tons/year (mmty) of liquefied natural gas (LNG) for 15 years from Area 1 of the project.
A final investment decision (FID) is expected to be announced by mid-year. Anadarko MoÃ§ambique Ãrea 1 Lda operates Area 1 with a 26.5% working interest.
In addition to having BPCL as an upstream equity co-venturer, it now is a foundation customer, said Anadarko Executive Vice President Mitch Ingram, who oversees the international, deepwater and exploration arm.
“With this agreement, Mozambique LNG now has executed more than 8.5 mmty of SPAs,” Ingram said. “India’s role in the global LNG market will continue to grow with Mozambique LNG being a natural supplier, given its geographic proximity and 30% Indian state-owned interest in Mozambique LNG.”
Mozambique LNG would be the country’s first onshore gas export development, initially consisting of two trains with total nameplate capacity of 12.88 mmty to support developing the Golfinho/Atum fields that are within Offshore Area 1.
Asia-Pacific co-venturers in the Mozambique project are ENH Rovuma Ãrea Um SA (15%), Mitsui E&P Mozambique Area 1 Ltd. (20%), ONGC Videsh Ltd. (10%), Beas Rovuma Energy Mozambique Ltd. (10%), BPRL Ventures Mozambique BV (10%), and PTTEP Mozambique Area 1 Ltd. (8.5%).
Earlier this month Shell International Trading Middle East Ltd. in a SPA agreed to take 2 mmty from 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 from the startup of production 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.
Eni SpA and ExxonMobil Corp. last year sanctioned the separate Coral South LNG export project in Mozambique, which together with Anadarko’s could make the southeastern African nation the world’s fourth-largest gas exporter.
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