Japan’s Tohoku Electric Power said on Monday it had signed a basic agreement to buy up to 280,000 tonnes per year of LNG from the Anadarko-led Mozambique LNG export project for a period of 15 years.
Tohoku signed the deal with a marketing company formed in December 2015 by the Mozambique LNG project participants such as Anadarko.
These supplies would start in the early 2020s when the LNG export project is expected to start production, according to a Tohoku Electric statement.
The cargoes would be delivered on a delivered ex-ship (DES) basis.
Tohoku said this deal marks the first long-term LNG purchase from continental Africa for the power utility.
The two companies will continue talks towards signing a final sales agreement, the statement said.
Anadarko and its partners have discovered more than 75 Tcf of natural gas resources in the Prosperidade and Golfinho/Atum complexes in Mozambique’s Offshore Area 1, which will be used to feed an onshore LNG terminal on the Afungi peninsula in Cabo Delgado province.
The discovered reserves in Mozambique are sufficient to support two initial LNG trains, each with a capacity of 6 mtpa, as well as to accommodate expansions, including additional trains capable of producing about 50 mtpa, according to Anadarko.
Besides Anadarko, partners in the Mozambique LNG project are Empresa Nacional de Hidrocarbonetos (ENH), Mitsui E&P Mozambique Area1, ONGC Videsh, Bharat PetroResources, PTT Exploration & Production and Oil India.
LNG World News Staff