Anadarko Shell Deal for Mozambique LNG

US company Anadarko Petroleum has signed a major long-term contract to shore up its proposed liquefied natural gas (LNG) terminal in Mozambique.

The Woodlands-based oil and gas company said that  Mozambique LNG1 Company, 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. The SPA is for 2 million tonnes of LNG per annum (MTPA) for a term of 13 years.

 "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.

"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," he added.

"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. We are confident that through this deal, LNG from Mozambique will find its way to a diverse number of markets across the globe," Mitch said.

The Anadarko-operated Mozambique LNG project will be Mozambique's first onshore LNG development, initially consisting of two LNG trains with total nameplate capacity of 12.88 MTPA to support the development of the Golfinho/Atum fields located entirely within Offshore Area 1.