Feb. 19 (UPI) -- Anadarko Petroleum Corp. said that all co-venturers of the Mozambique LNG1 Company Pte. Ltd. signed an accord to sell one million tons per year of liquified natural gas to Indonesian state oil company Pertamina for 20 years.
"Indonesia is expected to be one of the fastest growing natural gas markets in Asia and Pertamina, the national energy company of Indonesia, will play a key role in meeting Indonesia's long-term energy needs," Mitch Ingram, Anadarko executive vice president for international, deepwater and exploration, said in a news release.
"The Anadarko-led Mozambique LNG project is well positioned to make a sanctioning decision in the first half of this year, as we remain on track to complete the project financing process, secure the necessary approvals, and have executed a sufficient volume of long-term Sales and Purchase Agreements, which now total more than 9.5 million metric tons per year," Ingram said.
Houston-based Anadarko is developing Mozambique's first onshore LNG facility consisting of two initial LNG trains with a total nameplate capacity of 12.88 metric tons per year to support the development of the Golfinho/Atum field located entirely within Offshore Area 1.
Anadarko has a 26.5-percent working interest. Co-venturers include ENH Rovuma Área Um, S.A. with 15 percent, Mitsui E&P Mozambique Area1 Ltd. with 20 percent, ONGC Videsh Ltd. with 10 percent, Beas Rovuma Energy Mozambique Limited with 10 percent, BPRL Ventures Mozambique B.V. with 10 percent, and PTTEP Mozambique Area 1 Limited with 8.5 percent.
Pertamina operates in 12 countries spread over four continents. The company's goals include producing 650,000 barrels of oil equivalent per day by 2025 from its international operations. The goal is part of Pertamina's production target of 1.9 million barrels per day by 2025 -- part of a determined effort toward establishing Indonesia's energy resiliency and self-sufficiency.
Substantial natural gas deposits discovered in Mozambique's Rovuma basin could transform the country into a significant liquefied natural gas exporter, the U.S. Energy Information Administration said in a report last updated in May 2018.
International companies face significant obstacles to developing resources in Rovuma, and LNG exports are not likely to begin until after 2020, the EIA said.
The IEA added that Mozambique does not produce any crude oil or have any refining capacity and relies on imports to satisfy all of its oil product demand.
Mozambique is a Portuguese speaking country located in southeast Africa, located about 5,438 miles east of Indonesia along the Indian Ocean.
LNG is natural gas that undergoes a cryogenic process to reduce its temperature and bring down its size about 600 times, creating a compressed liquid that is easier to transport.