Shell, through its subsidiary Shell International Trading Middle East, has signed a Sale and Purchase Agreement (SPA) with Mozambique LNG1, the holding company of the Mozambique LNG project, to purchase 2MTPA of LNG for a term of 13 years.
The operator of the Mozambican LNG project is Anadarko Petroleum’s subsidiary Anadarko Moçambique Área 1 with a stake of 26.5%. The other Mozambique Area 1 co-venturers are ENH Rovuma Área Um (15%), Mitsui E&P Mozambique Area1 (20%), ONGC Videsh (10%), Beas Rovuma Energy Mozambique (10%), BPRL Ventures Mozambique (10%), and PTTEP Mozambique Area 1 (8.5%).
Anadarko international, deepwater & exploration executive vice president Mitch Ingram said: “With demand for LNG expected to grow worldwide in the middle of the next decade, 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.
“Mozambique LNG is extremely pleased to have Shell onboard as a foundation customer, and the Shell deal adds to our growing list of high-quality customers demonstrating the excellent progress we are making toward our stated goal of taking a final investment decision during the first half of this year.”
In the other SPA, Tokyo Gas and Centrica agreed to jointly buy 2.6MTPA of LNG from the Mozambique LNG project from the start of production until the early 2040s.
Centrica Group Chief Executive Iain Conn said: “The deal deepens our strategic partnership with Tokyo Gas and provides a flexible LNG supply source able to serve the needs of our combined customer base.
“With strong energy marketing and trading capabilities we are ideally placed to work with Mozambique LNG and this agreement will complement our existing positions as we continue to develop this valuable growth area of our business.”
Recently, the Mozambique Area 1 co-venturers signed an agreement to sell 1.5MTPA of LNG from the Mozambican LNG project to China’s CNOOC for a term of 13 years.
The Mozambique LNG project is planned to be built on the Afungi peninsula in Cabo Delgado province. It will initially have two LNG trains with total nameplate capacity of 12.88MTPA.
The gas for the LNG project will be sourced from the Golfinho/Atum natural gas field in the Area 1 block contained in Mozambique’s Rovuma Offshore Basin. The development of the offshore gas field and the associated Mozambique LNG project were approved by the Mozambican government in March 2018.
