Anadarko Petroleum has moved a step ahead with the Mozambique LNG project as it reportedly lined up 90% of supply deals that are only awaiting state approvals.
Bloomberg cited John W. Peffer, President and Managing Director of Anadarko Mozambique, saying the final investment decision depends on how quickly the state can verify Anadarko’s heads of agreements or non-binding deals. It also depends on how quickly the state will agree legas and constractual framework and approve all necessary permits.
The country has already passed laws to support the development of liquefied natural gas.
Peffer added that the company has lined up potential buyers for over 8 mtpa of LNG per year, while preliminary work by contractors has already started.
Anadarko and partners have discovered more than 75 Tcf of recoverable natural gas resources in Mozambique’s Offshore Area 1, which will be used to feed an initial two-train LNG development.
The plant will be located in the Afungi peninsula area of Cabo Delgado province. The area is large enough to accommodate expansions, including multiple additional trains capable of producing approximately 50 million tonnes of LNG per annum in future years, according to Anadarko.
The Mozambique LNG partners are Empresa Nacional de Hidrocarbonetos, Anadarko, Mitsui & Co, Bharat PetroResources, ONGC Videsh, Oil India, and PTT Exploration & Production.
LNG World News Staff; Image: Mozambique LNG