Mozambique Oil & Gas: Anadarko expects several deals this year for its area 1 LNG project

Rovuma basin Anadarko vesselSINGAPORE, (Reuters) – Anadarko Petroleum expects to conclude several sales and purchase agreements (SPA) by year-end for liquefied natural gas (LNG) from its new plant in Mozambique, a company official said.

Texas-based Anadarko is developing the first onshore LNG plant in the African nation, consisting of two initial LNG trains with a total capacity of 12.88 million tonnes per annum.

“We have multiple ongoing negotiations with a variety of buyers … everyone from Chinese to Indians to Japanese,” said Andrew Seck, vice president of Anadarko’s LNG Marketing and Shipping division.

In all, Anadarko has agreed on commercial terms including volume and price for 5.1 MMtpy of LNG off-take deals from Mozambique, closing in on the 8.5 MMtpy target needed to trigger its final investment decision (FID) on the project, Seck said on the sidelines of an LNG conference in Singapore.

Deals so far include Anadarko’s first binding SPA with France’s Electricite de France, as well as an earlier SPA with Thailand’s state-run PTT that is still undergoing government approvals. There is also a preliminary deal with Japanese utility Tohoku Electric.source: Reuters; Reporting by Jessica Jaganathan Editing by Joseph Radford

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