Anadarko Petroleum Corp. struck long-term agreements to provide LNG supply to Royal Dutch Shell PLC, Tokyo Gas Co. Ltd. and Centrica PLC from Anadarko's planned facility in Mozambique, boosting total sales for the project to over 7.5 million tonnes per annum.
Mozambique LNG1 Co. Pte. Ltd., the jointly owned sales entity of the Mozambique Area 1 onshore LNG plant, agreed to provide 2 mtpa of LNG to Shell International Trading Middle East Ltd. for a 13-year term, according to a Feb. 5 news release. Under a separate co-purchasing deal, Tokyo Gas and Centrica LNG Co. Ltd. would offtake 2.6 mtpa of LNG from production startup to the early 2040s.
The Mozambique Area 1 project is designed to have two LNG trains with 12.88 mtpa of total nameplate capacity. The project is expected to support the development of the Golfinho/Atum natural gas fields offshore Mozambique. Anadarko's subsidiary Anadarko Mozambique Area I Ltda. is the operator of Offshore Area 1, where the gas fields are located, with a 26.5% working interest.
In February 2018, the government of Mozambique approved the $20 billion LNG project, the first of its kind in the country. Anadarko on Feb. 1 said it reached a supply deal with CNOOC Ltd. for 1.5 mtpa of LNG. Anadarko expects to make a final investment decision on the project in the first half of 2019.