Anadarko advances Mozambique LNG project

Anadarko Petroleum Corp., The Woodlands, Tex., has finalized two agreements with the government of Mozambique that would allow the firm to design, build, and operate marine facilities for its LNG project in the northern part of the country.

Anadarko Petroleum Corp., The Woodlands, Tex., has finalized two agreements with the government of Mozambique that would allow the firm to design, build, and operate marine facilities for its LNG project in the northern part of the country.

The finalization follows the publication of Mozambican government decrees approving the agreements.

"This is a key milestone on the path to a final investment decision (FID) for our initial two-train LNG project," commented Mitch Ingram, Anadarko executive vice-president, global LNG. "It marks the completion of the core components of the legal and contractual framework with the government. We will now look ahead with our plans to begin resettlement, which will enable the construction of the LNG plant.

“In addition, we continue to make good progress with our efforts to secure long-term LNG sales and purchase agreements (SPA) with premier buyers, and we will intensify our work to put in place the necessary financing for the project,” Ingram said. “We expect to take FID once the SPAs and financing are in place."

Anadarko is developing Mozambique's first onshore LNG plant consisting of two initial LNG trains with a total capacity of 12 million tonnes/year to support Golfinho-Atum field located entirely within Offshore Area 1, where the firm and its partners have discovered 75 tcf of recoverable natural gas resources.

Anadarko operates Offshore Area 1 with 26.5% working interest. Partners are Empresa Nacional de Hidrocarbonetos EP (ENH) with 15%, Mitsui E&P Mozambique Area1 Ltd. 20%, ONGC Videsh Ltd. 16%, Bharat PetroResources Ltd. 10%, PTT Exploration & Production PLC 8.5%, and Oil India Ltd. 4%.

Eni SPA is simultaneously advancing its Coral South floating LNG (FLNG) project in Area 4 offshore Mozambique (OGJ Online, June 27, 2017). That project, which includes the installation of a 3.4 million-tpy FLNG facility fed by six subsea wells, is expected to start up in mid-2022.

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