Anadarko Seals New Deal on Mozambique LNG

Anadarko announced May 13 that it has sealed a deal to supply Japan's Jera and Taiwan's CPC Corporation with LNG from its Mozambique LNG project.

The sale and purchase agreement (SPA) will see Anadarko supply 1.6mn mt/yr over 17 years. The US company has said that it expects to take a final investment decision on the Mozambique LNG project, which includes the Mozambique Area 1 offshore field, next month.

Anadarko says the SPA means it now has a portfolio of long-term agreements on the project totalling 11.1mn mt/yr, which includes four of the top five LNG importing markets in the world. Counterparties to other LNG offtake agreements include CNOOC, Tokyo Gas, Centrica, Shell, Tohoku, Bharat, and EDF 

“This co-purchasing agreement with JERA and CPC brings together two prominent Asian foundation customers and will ensure a reliable supply of cleaner energy to meet the growing demands of both Japan and Taiwan,” said Anadarko executive vice president Mitch Ingram. “We are excited to take the next step with the expected announcement of a FID for the Mozambique LNG project on June 18,” he added.

However, Mozambique’s first onshore LNG facility, which features two initial trains with a total nameplate capacity of 12.88mn mt/yr, is expected to change hands soon. Occidental Petroleum is due to close a deal to buy Anadarko in the second half of 2019, upon which it will sell all of the company’s African assets to French Total for $8.8bn.

Subsidiary Anadarko Moçambique Area 1 operates Offshore Area 1 with a 26.5% working interest. Co-venturers include ENH Rovuma (15%), Mitsui (20%), ONGC (10%), Beas Rovuma Energy Mozambique Limited (10%), BPRL (10%), and PTTEP (8.5%).