Indonesia's Pertamina to Buy Mozambican LNG
Anadarko Petroleum said February 19 that Mozambique LNG1 Company, the jointly owned sales entity of the Mozambique Area 1 co-venturers, has signed a sale and purchase agreement (SPA) with Indonesian state-owned Pertamina.
As per the SPA, the Indonesian firm will buy 1mn metric tons/year of LNG for a term of 20 years.
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"Indonesia is expected to be one of the fastest growing natural gas markets in Asia and Pertamina, the national energy company of Indonesia, will play a key role in meeting Indonesia's long-term energy needs," said Mitch Ingram, Anadarko executive vice president, International, Deepwater & Exploration.
"The Anadarko-led Mozambique LNG project is well positioned to make a sanctioning decision in the first half of this year, as we remain on track to complete the project financing process, secure the necessary approvals, and have executed a sufficient volume of long-term SPAs, which now total more than 9.5mn mt/yr," he added.
In addition to Pertamina, in the recent weeks, Mozambique LNG1 Company has signed SPAs with Tokyo Gas, Centrica LNG, Tokyo Gas, BPCL and Cnooc.
The Anadarko-operated Mozambique LNG project might be Mozambique's first onshore LNG development, initially consisting of two LNG trains with total nameplate capacity of 12.88mn mt/yr to support the development of the Golfinho/Atum fields entirely within Offshore Area 1.
There is another LNG project, Rovuma LNG, operated by Italian Eni (upstream) and ExxonMobil (midstream), which has sold out its cargoes, with the partners also the buyers. But it has not yet formally announced FID either.
Anadarko Mozambique Area 1, a wholly owned subsidiary of Anadarko, operates Offshore Area 1 with a 26.5% working interest. Co-venturers include ENH Rovuma Area Um (15%), Mitsui E&P Mozambique Area1 (20%), ONGC Videsh (10%), Beas Rovuma Energy Mozambique (10%), BPRL Ventures Mozambique (10%), and Thai PTTEP Mozambique Area 1 (8.5%). Shell had tried to buy a stake in the project company from Cove, but was outbid by the Thai upstream company.