Mozambique’s natural gas area 1 will sell to the public company Eletricité of France, US oil company Anadarko, which leads the exploration consortium in the area, announced.
To obtain guarantees of its financial viability, Anadarko is closing contracts in advance in order to further the Area 1 exploration project.
When the final investment decision is made, it should take five years before natural gas extraction begins.
The long-term purchase and sale agreement with Electricity from France (EDF) provides for the supply of 1.2 million tonnes per year for a period of 15 years.
“EDF is one of the largest electricity companies in the world,” Ingram said.
“The LNG of Mozambique is unique in its location, with the capacity to supply a variety of geographical locations,” and the contract with EDF offers “flexible access to Europe”, which is one of the “main strategic markets”, the oil company said.
The Mozambique LNG project operated by Anadarko will initially consist in two factories with a total capacity of 12.88 million tons per year to support the exploration of deposits under the sea, 16 kilometers off the province of Cabo Delgado.