US-based oil and gas company Anadarko Petroleum has signed two sales and purchase agreements (SPAs) for 4.6 Mt/year of LNG from its Mozambique LNG project. The global oil and gas producer Shell will buy 2 Mt/year of LNG over a 13-year period, while Tokyo Gas and Centrica will buy 2.6 Mt/year from the start-up of production until the early 2040s on the other hand.
This is a significant step forward for the project, just a few days after Anadarko signed a similar agreement for a total capacity of 1.5 Mt/year with CNOOC (China National Offshore Oil Corporation) for a 13-year period as well. This brings Mozambique LNG's total long-term sales to more than 7.5 Mt/year, which also includes a fourth 1.2 Mt/year SPA signed with the French power utility EDF in February 2018.
Mozambique LNG (MLNG) will consist of two liquefaction trains with a total nameplate capacity of 12.9 Mt/year. The project will be located on the Afungi peninsula in the Cabo Delgado province of northern Mozambique and is expected to be commissioned in 2023. It is being developed by Anadarko (26.5%) in partnership with Mitsui (20%), OVL (ONGC Videsh Ltd, 16%), Empresa Nacional de Hidrocarbonetos (ENH, 15%), Bharat PetroResources (10%), PTTEP (8.5%) and Oil India (4%). It will exploit gas reserves from the Offshore Area 1 in the Rovuma basin (estimated to hold more than 2 100 bcm or 12 Gboe).