U.S. oil and gas company Anadarko, as operator of Mozambique’s offshore Area 1, has signed a deal for up to 280,000 tonnes per year of liquefied natural gas (LNG) supply with Japan’s Tohoku Electric Power company.
"Anadarko and our co-venturers in Area 1 are proud to report we have executed an LNG Sale and Purchase Agreement (SPA) with Tohoku Electric Power Company, Inc. for the supply of 0.28 million tonnes of LNG per annum for a period of 15 years," said a press release from the company.
"This SPA further demonstrates the steady progress we continue to make toward our target of an affirmative final investment decision (FID) during the first half of 2019. It brings together one of Japan’s most important LNG buyers and the Anadarko-operated Mozambique LNG project and affirms our belief that Mozambique LNG will be a cost-competitive, long-term, global LNG supplier. We look forward to serving Tohoku Electric Power Company, Inc. and our growing list of customers,” said Mitch Ingram, Anadarko Executive Vice President, International, Deepwater and Exploration.
The deal marks first purchase of long-term LNG from continental Africa for Tohoku Electric. The company signed a basic agreement on the deal in December 2017.
A statement from Tohoku Electric said: "This will be our first long-term agreement to procure LNG from the African continent, which will enable us to further diversify our supply sources. In addition, we believe that the agreement will contribute to improving our procurement flexibility, stability, and economics by enabling us to adjust our procurement volume depending on our supply and demand."
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