Anadarko agrees new LNG concessions with Mozambique

Houston, Texas-based Anadarko Petroleum has agreed two new deals with the government of Mozambique in its bid to design, build and operate a land-based LNG production project in the north of the country.

The two marine concessions allow Anadarko to design, build and operate a two-train, 12 million tonne a year LNG-export plant. Maputo has published government decrees approving the Anadarko agreements.

Anadarko is rushing to catch up with ENI of Italy, which agreed a final investment decision (FID) on the Mozambique offshore Coral FLNG project in June.

“This is a key milestone on the path to FID for our initial two-train LNG project, Anadarko executive vice-president global LNG Mitch Ingram said in a statement. “It marks the completion of the core components of the legal and contractual framework with the government.

“We will now look ahead with our plans to begin resettlement, which will enable the construction of the LNG plant… We continue to make good progress with our efforts to secure long-term LNG sales and purchase agreements (SPAs) with premier buyers and 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.”

Mozambique is pulling ahead of its neighbour Tanzania in the race to bring east African gas reserves to market as LNG.

ENI hopes to produce its first LNG in 2022. It has contracted its entire 3.4 mta output to BP.

Anadarko’s plan is estimated to cost some US$15Bn. Its US$300M plan to resettle villagers living in the fishing communities of the Afungi Peninsula has divided opinion in Mozambique.