Bloomberg are reporting that Anadarko Petroleum Corp. is in talks to sate China’s increasing appetite for LNG from its planned development in Mozambique.
The company is in discussions with “a variety of Chinese counterparts including national oil companies and emerging independent LNG buyers,” Anadarko said. Increasing consumption makes China “a long-term strategic market for the Anadarko-led Mozambique LNG project.”
China’s record-breaking gas demand could help spur investment decisions on projects to export LNG from East Africa. LNG prices were buoyed as Chinese imports rose almost 50% in the first 10 months of 2017, making it the world’s third-largest buyer after Japan and South Korea.
While Eni SpA has signed off on its US$7 billion floating Coral project in Mozambique, Anadarko needs more sales and purchase agreements to justify a final investment decision on its own development in the north of the country. Anadarko has already lined up SPAs for about 2.6 million tpy of the more than 8 million t it is targeting.
Chinese demand would also temper the impact of the US shale gas boom that has weighed on prices.
Onshore facilities to chill the fuel from discoveries off northern Mozambique were initially targeted to reach production this year. BP Plc signed a 20-year contract in 2016 to buy all the LNG from Eni’s Coral project. Last year, Exxon Mobil Corp. bought 25% of another of the Italian explorer’s developments in the African nation and will lead the construction and operation of its onshore facilities.
A decision over Tanzania’s proposed onshore LNG project is likely years away. Operators such as Statoil ASA have highlighted the country’s need for the completion of laws related to the sector.
Read the article online at: https://www.lngindustry.com/liquefaction/10012018/anadarko-discussing-mozambique-lng-supply-with-chinese-buyers/