On 26th April, Anadarko had "in principle" secured sufficient offtake to enable FID of the first phase of Mozambique LNG on Area 1 offshore Mozambique. The huge resource of 75 tcf is planned to be initially developed via two trains with capacity of 12.88 mtpa. In time, this could eventually be expanded to eight trains producing 50 mtpa.
Since the announcement, Anadarko has also made clear that it expects to debt finance ~USD12 billion of the USD20 billion Phase 1 development, mainly from export credit agencies or ECAs.
In March, Anadarko noted that it had secured 5.1 mtpa of offtake and was close to achieving the 8.5 mtpa needed for FID. It is clear that the company is now very close or has surpassed that threshold with remaining efforts on converting heads of terms and discussions into signed SPA contracts.
Offtakers include a range of Chinese, Japanese and other NOC buyers as well as utilities. It has been reported that deals include France’s EdF, Thailand’s state-run PTT and Japanese utility Tohoku Electric.
This is a good piece of news for Mozambique LNG which is finally showing signs of moving ahead and follows finalisation of development concessions with the Mozambique government last year. The Area 1 FID could potentially overtake ExxonMobil's Area 4 project, in which ExxonMobil acquired a 25% from Eni in 2017 (the deal closed in December 2017).
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| Area 1 ownership stakes Source: Bloomberg, Mozambique LNG |
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