Anadarko project advances
Anadarko Petroleum signed a new, long-term contract to sell liquefied natural gas from its planned Mozambique LNG project, a deal that gives The Woodlands company enough sales contracts to move forward with construction.
Anadarko is expected to announce a final decision to start building the multibillion-dollar LNG export project in eastern Africa by the end of this spring — if not sooner — as more top oil companies invest in natural gas projects for the future.
The deal includes the sale of 1 million metric tons a year of LNG to India’s Bharat Petroleum for a term of 15 years. The deal gives the project a total of 8.5 million metric tons of LNG sales a year in signed contracts, lifting Anadarko over the 8 million ton threshold the company said it wanted to reach before authorizing construction.
Anadarko is among the oil companies making big bets on natural gas as rising concerns about climate change drive nations to cut greenhouse gas emissions. Natural gas is the cleanest-burning fossil fuel, and many countries, including China, are using it to replace coal, one of the dirtiest.
The Mozambique project is part of a so-called second wave of global LNG projects moving forward this year to supply the world, especially growing Asian nations, with more gas supplies to power their economic growth. Natural gas is used around the world for electricity generation, heating, cooking, fuel and more.
Several of those projects are being built along the Texas and Louisiana Gulf Coast. Earlier this month, Exxon Mobil and stateowned Qatar Petroleum said
they’ll build the Golden Pass LNG export project in southern Port Arthur along the Sabine Pass. Other Texas LNG export facilities are near Freeport and Corpus Christi.
As for Mozambique LNG, Bharat Petroleum is now signed on as a buyer, but Bharat also owns a 10 percent stake in the project.
Two other Indian firms own stakes as well.
“India’s role in the global LNG market will continue to grow with Mozambique LNG being a natural supplier given its geographic proximity and 30percent Indian stateowned interest in Mozambique LNG,” said Mitch Ingram, Anadarko’s executive vice president for international, deepwater and exploration.
Anadarko recently announced other sales deals with Tokyo Gas, Great Britain’s Centrica and Royal Dutch Shell.
The Mozambique project would initially produce 12.88 million metric tons of LNG a year for global buyers.
Anadarko leads the LNG project with a 26.5 percent ownership stake. Other owners include the Mozambique state energy company, 15 percent; Japan’s Mitsui Group, 20 percent; India’s ONGC Videsh, 16 percent; India’s Bharat, 10 percent; Thailand’s PTT Exploration and Production, 8.5 percent; and Oil India Ltd., 4 percent.