PTT signs Mozambique LNG deal
PTT Exploration and Production Public Company Limited (PTTEP) revealed that Mozambique LNG1 Company Pte Ltd, the jointly owned sales entity of PTTEP, and other partners at the Mozambique Rovuma Offshore Area 1 project, has signed an agreement with Tokyo Gas Co, Ltd and Centrica LNG Co, Ltd for the long-term supply of liquefied natural gas (LNG).
The co-purchasing off-take agreement calls for the delivered ex-ship supply of 2.6 million tonnes per annum.
“The off-take agreement of the significant sales volume with both firms marks the important progress of the Mozambique Rovuma Offshore Area 1 project. The conversion of this non-binding commitment into fully termed sale and purchase agreements in the future will support the final investment decision of the project,” said Phongsthorn Thavisin, PTTEP’s president of exploration and production.
The deal with Tokyo Gas and Centrica takes advantage of Mozambique’s favourable location in southeast Africa, which enables it to supply customers in both European and Asia-Pacific customers. The partners in Mozambique have entered into a long-term agreement with French utility EDF.
The off-take agreement calls for the supply of 1.2 million tonnes per annum for a term of 15 years.
The Mozambique project is one of PTTEP’s key natural gas projects as the company continues to consider investing in new potential areas with competitive cost structures.
The project will be Mozambique’s first onshore LNG development, initially consisting of two LNG trains with a total capacity of 12.9 million tonnes per annum to support the development of the Golfinho/Atum fields within Offshore Area 1.
