US company Anadarko Petroleum said it has allocated about $200 million for the Mozambique LNG export project and plans to make a final investment decision in the first half of next year.
“The company remains on track for FID consideration in the first half of 2019,” it said Thursday during its 2019 capital expectations and guidance.
The company added that it may adjust its capital-investment expectations associated with the Mozambique LNG project at the time of the project sanction.
The $200 million represents the portion of the costs associated with ongoing site preparation for the shared onshore facilities, it said.
Construction is expected to start by the end of 2019, with the first LNG exports by 2023, according to the FID timeframe announced earlier this year.
The exporter said it expects to upgrade the current non-binding offtake agreements into sales and purchase agreements by the end of the year, as well as signing more deals with new customers in Asia.
The current sales contracts are with Japanese Tohoku Electric (0.28 million mt/year), France’s EDF (1.2 million mt/year), and Thai state-owned PTT (2.6 million mt/year), all for a term of 15 years.
The UK’s Centrica and Japan’s Tokyo Gas had also jointly signed a non-binding long-term offtake heads of agreement (HoA) with Mozambique LNG in June.
The LNG project will initially consist of two LNG trains with total nameplate capacity of 12.88 million mt/year to support the development of the Golfinho/Atum fields located entirely within Offshore Area 1.
Partners in the project include Anadarko (26.5%), Mitsui (20%), ONGC Videsh (16%), Empresa Nacional de Hidrocarbonetos (ENH) (15%), Bharat PetroResources (10%), PTT Exploration & Production (8.5%) and Oil India (4%).source: Platts