Anadarko Expects Final Decision On Mozambique LNG Export Project In 2019



Reuters

June 27 (Reuters) - Anadarko Petroleum Corp said Wednesday the U.S. oil and gas producer expects to make a final investment decision in the first half of 2019 on whether to build the first liquefied natural gas export terminal in Mozambique.

Mitchell Ingram, Anadarko's executive vice president, international, deepwater and exploration, said at the World Gas Conference in Washington, D.C., that the U.S. oil and gas producer was ready to move forward with the Mozambique project after lining up enough customers for the LNG.

Ingram said the company was in the process of converting the sales agreements into binding sales agreements and ramping up the process of financing the project.

"Once we complete that, we will be ready to make a final investment decision in the first half of 2019," he said.

The decision comes a couple weeks after Anadarko and its partners in the Mozambique project signed sales agreements with units of Tokyo Gas Co Ltd and Centrica Plc.

Partners in the project include units of Mitsui & Co Ltd of Japan and ONGC Videsh of India, among others.

That deal with the Japanese and UK energy companies calls for the delivery of 2.6 million tonnes per annum (MTPA) from the start-up of production in Mozambique until the early 2040s.

The Mozambique project, located between both the Asia-Pacific and European markets, will consist of two liquefaction trains with the capacity to liquefy 12.88 MTPA to support the development of the Golfinho/Atum fields located entirely within Offshore Area 1.

Anadarko made its first discovery in Offshore Area 1 in 2010. In total, Ingram said the company and its partners have discovered about 75 trillion cubic feet of recoverable natural gas in the field.

Ingram said this project paves the way for significant future expansion of up to 50 MTPA in the future. Anadarko has said the Golfinho/Atum project will also supply initial volumes of about 100 million cubic feet per day of natural gas for domestic use in Mozambique.

Anadarko's Anadarko Moçambique Área 1 Lda unit operates Offshore Area 1 and holds a 26.5-percent working interest in the field.

(Reporting by Scott DiSavino; Editing by David Gregorio)



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