Tohoku Inks Deal to Buy LNG from Mozambique
Japanese utility Tohoku Electric signed December 15 a basic agreement to buy LNG from Anadarko-led LNG project in Mozambique, it said December 18.
Under this agreement, Tohoku will purchase up to 280,000 tons/yr of LNG 15 years from the beginning of the 2020s when this project is expected to begin production.
This is Tohoku’s first LNG purchase deal from African continent and the company said this will contribute to further diversification of procurement areas.
“Moreover, we think that we can improve flexibility, stability and economy in LNG procurement by making it possible to change procurement quantity according to our supply and demand of LNG,” it said, adding that both companies will continue discussions for concluding sales contracts in the future. The cargoes would be delivered on a delivered ex-ship (DES) basis.
Anadarko and partners have discovered some 75 trillion ft3 (2.12 trillion m3) of recoverable natural gas resources in offshore Area 1. Anadarko operates Mozambique offshore Area 1 with a 26.5% interest.; co-venturers include Mozambican state owned ENH 15%, Japan's Mitsui E&P 20%, Indian trio ONGC Videsh 16%, Bharat PetroResources 10% and Oil India 4%, plus Thai state upstream firm PTTEP 8.5%.
Anadarko announced in its 3Q2017 results on October 31 that it and its Area 1 co-venturers reached agreement on the project’s first long-term SPA for 2.6mn metric tons/yr with PTT, Thailand’s national oil and gas company during 3Q, adding that the deal had been approved by PTT’s board and was subject to the approval of the Thailand government.
Earlier this year the partnership signed its first long-term LNG supply agreement for 2.6mn metric tons/yr, with Thailand’s national oil company PTT.
The separate Eni-led Area 4 consortium has discovered some 85 trillion ft3 (2.4 trillion m3) of recoverable natural gas resources, and is proceeding with initial production through the 3.4mn mt/yr Coral South floating LNG venture, all output from which is contracted for supply to BP during its first 20 years of production.
However the Anadarko and Eni joint ventures will develop later liquefaction trains at a shared onshore site subject to final investment decisions; production from these is not expected before the mid-2020s.