Woodlands-based Anadarko’s final investment decision on its Mozambique LNG project is dependent on the development plan approval by the government.
In an interview with Reuters, John Peffer the country manager at Anadarko said the company is close to submitting its development plan, but the final investment decision hinges on the government’s approval of the plan.
Once the plan is submitted the government will have nine months to make its decision which could postpone the development and potentially add costs. However, Peffer added that Anadarko still targets first production by the end of the decade, although industry sources see this as an unrealistic target.
Peffer noted that Anadarko has no plans to sell its Mozambique assets, contrary to some media reports, adding that the company has already made non-binding deals with Asian customers for 8 million tons of LNG per year, which secures 90 percent of the contracts that are needed for the project to move forward.
Anadarko does face another possible issue once the development plans are approved. The company will have to relocate thousands of Mozambicans from the areas where the LNG facilities are to be constructed.
The company is also close to submitting the re-settlement plan to the government, Peffer added.
LNG World News Staff; Image: Mozambique LNG