Anadarko announces Multiple LNG Sale and Purchase Agreement with Shell, Tokyo Gas and Centrica in Mozambique

Anadarko Petroleum has announced that Mozambique LNG1 Company Pte. Ltd., the jointly owned sales entity of the Mozambique Area 1 co-venturers, has signed a Sale and Purchase Agreement (SPA) with Shell International Trading Middle East Ltd. (Shell) for 2 million tonnes of LNG per annum (MTPA) for a term of 13 years.

According to Anadarko Executive Vice President, International, Deepwater & Exploration Mitch Ingram the growing demand for LNG globally, Shell’s strong global reputation in LNG, combined with Mozambique LNG’s significant resource and favorable geographic location, create a unique opportunity to provide customers with a long-term, reliable supply of clean energy.

‘We are very pleased to announce this SPA with Shell, which builds upon previously announced deals and takes our total long-term sales to more than 7.5 MTPA, with additional deals expected in the near future,’ said Mitch Ingram, Anadarko Executive Vice President, International, Deepwater & Exploration.

Ingram added that the Shell deal added to the JV’s growing list of high-quality customers demonstrating the excellent progress made toward the stated goal of taking a final investment decision during the first half of 2019.

Further Anadarko has signed a Sale and Purchase Agreement (SPA) with Tokyo Gas and Centrica LNG Company, a subsidiary of Centrica, for the long-term supply of LNG. The co-purchasing off-take agreement calls for the delivered ex-ship supply of 2.6 million tonnes per annum (MTPA) from the start-up of production until the early 2040s.   

Anadarko says the co-purchasing agreement with Tokyo Gas and Centrica will ensure a reliable supply of clean-burning natural gas to help meet the energy demands of Japan and Europe. Anadarko adds the agreement signals the beginning of a new and lasting relationship between Mozambique’s first onshore LNG development and Tokyo Gas and Centrica LNG Company

‘With the vast resources we have discovered in Area 1 and our capability to compete in global LNG markets, Mozambique LNG is poised to become a key LNG supplier for decades to come. We are excited to support the Japanese government’s desire for competitively priced and flexible long-term supply of LNG to proactively manage demand fluctuations in their home markets and enhance the nation’s energy security. We expect to announce additional SPAs in the near future, as we continue to make demonstrable progress toward taking a final investment decision in the first half of this year,’ added Ingram.

Anadarko is developing Mozambique’s first onshore LNG plant consisting of two initial LNG trains with a total nameplate capacity of 12.88 MTPA to support the development of the Golfinho/Atum field located entirely within Offshore Area 1.  

Anadarko Moçambique Área 1, Lda, a wholly owned subsidiary of Anadarko Petroleum Corp, operates Offshore Area 1 with a 26.5-percent working interest. Co-venturers include ENH Rovuma Área Um (15 percent), Mitsui E&P Mozambique Area1 (20 percent), ONGC Videsh (10 percent), Beas Rovuma Energy Mozambique (10 percent), BPRL Ventures Mozambique(10 percent), and PTTEP Mozambique Area 1 (8.5 percent).