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FID on Mozambique LNG project expected in April – June 2018

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LNG Industry,


According to Reuters, Mitsui & Co. is expecting a final investment decision (FID) on the Mozambique LNG project in April – June 2018, four months later than originally expected.

Hirotatsu Fujiwara, Mitsui's Executive Managing Officer, reportedly said: “We had hoped to have finalised the negotiations with (the) Mozambican government by December.”

He went on to say that the project (which has two trains with a combined capacity of 12 million tpy) is expected to commence operations in 2022 – 2023, following an approximately four-year construction period.

Fujiwara reportedly added that the project partners are currently holding discussions with Japanese power and gas utilities, with plans to finalise long-term offtake agreements within one year. Project partners include Anadarko Petroleum, Mitsui, ONGC Videsh Ltd, Bharat PetroResources Ltd, Oil India Ltd and PTT Exploration & Production Plc.

Fujiwara noted that the Mozambique LNG project has currently secured over 8 million tpy of non-binding long-term commitments. However, the project needs to secure binding commitments to account for approximately 80% of the facility’s total capacity in order to receive the required funding for FID. Fujiwara noted that the project was willing to provide buyers with various price benchmarks.

Read the article online at: https://www.lngindustry.com/liquefaction/06042017/fid-on-mozambique-lng-project-expected-in-april-june-2018/


 

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