The government of Mozambique has approved Anadarko Petroleum Corp’s US$20bn development plan for liquefied natural gas (LNG) project in the northern region of the country
According to Bloomberg, the next major requirement which the company needs to meet prior to reaching a final investment decision on the Area 1 project is to sign a number of sales and purchase agreements.
Anadarko-led consortium has agreed the price and volumes for 5.1 mmt per year of gas production, said the source. About 8.5mn tonnes are required to reach financial close, said the company to the press.
The company signed an agreement with Japan’s Tohoku Electric Power Co to sell it gas in the last quarter of 2017. According to the company, it has started resettling communities from the land where it plans to develop its LNG plant.
The development of Mozambique’s gas deposits by Andarko focus on making the Southeastern African nation as one of the world’s biggest natural gas exporters, added the source.
