Anadarko Petroleum has announced that Mozambique LNG1 Company has signed an agreement with CNOOC Gas and Power Singapore Trading & Marketing to supply liquefied natural gas (LNG) from Mozambique.

Mozambique LNG

Image: The Anadarko-operated Mozambique LNG project will be Mozambique's first onshore LNG development. Photo courtesy of rawpixel on Unsplash.

Mozambique LNG1 Company is a jointly owned sales entity of the Mozambique Area 1 co-venturers.

Under the sales agreement, 1.5 million tons per annum (MTPA) of LNG will be supplied to CNOOC for a term of 13 years.

Anadarko international, deepwater & exploration executive vice president Mitch Ingram said: “We are pleased to announce this SPA with CNOOC, an important global energy player in one of the biggest and fastest growing LNG markets in the world.

“This deal gives China’s largest LNG importer access to Mozambique LNG’s world-class gas resources, which are strategically located off the East Coast of Africa, and will provide China with a clean source of energy for years to come.”

The Anadarko-operated Mozambique LNG project will be Mozambique’s first onshore LNG development.

The LNG project will initially comprises two LNG trains with total nameplate capacity of 12.88 MTPA to support the development of the Golfinho/Atum fields located entirely within Offshore Area 1.

Offshore Area 1 is operated by Anadarko Moçambique Área 1, a wholly owned subsidiary of Anadarko Petroleum, with 26.5% working interest.

ENH Rovuma Área Um, Mitsui E&P Mozambique Area1, ONGC Videsh, Beas Rovuma Energy Mozambique, BPRL Ventures Mozambique, PTTEP Mozambique Area 1 are the co-venturers in Offshore Area 1.

Ingram said: “This agreement adds to our growing list of customers in the Asia-Pacific region, demonstrating the excellent progress we are making toward our stated goal of taking a final investment decision during the first half of this year. We expect to announce further SPAs in the near future.”

In June 2018, Anadarko Petroleum and its partners agreed to sell 2.6 MTPA of LNG from the proposed $20bn onshore Mozambique LNG project to Tokyo Gas and Centrica LNG.

The duration of the supply will be from the start-up of production of the Mozambique LNG project until the early 2040s.