Texas-based Anadarko Petroleum has signed two new deals together known as – marine concessions – with the Government of Mozambique to design, build and operate the country’s first onshore liquefied natural gas (LNG) production project.

The onshore LNG plant, which will be located in the north of the country, will feature two initial LNG trains with a total capacity of 12 million tons per annum to support the Golfinho/Atum field within Offshore Area 1.

Anadarko Petroleum Global LNG executive vice president Mitch Ingram said that this is a key milestone on the path to a final investment decision for their initial two-train LNG project.

“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 (SPAs) with premier buyers, and we will intensify our work to put in place the necessary financing for the project.

“We expect to take FID once the SPAs and financing are in place."

Anadarko operates Offshore Area 1 with a 26.5% interest. Other stakeholders are Bharat PetroResources (10%), Empresa Nacional de Hidrocarbonetos (15%), Mitsui E&P Mozambique (20%), Oil India (4%), ONGC Videsh (16%) and PTT Exploration & Production (8.5%).

The US-based independent oil and natural gas exploration and production company has reported a net loss of $415m for the second quarter ended on 30 June 2017, even after closing the divestitures of its Eaglebine and Utah CBM assets for $604m during the reporting period.

According to Anadarko, it had approximately 1.72 billion barrels-equivalent of proved reserves as of year-end 2016.