Woodlands-based Anadarko said that approximately $150 million is expected to be invested in the Mozambique LNG project in 2018. The investment in the project is a part of Anadarko’s expected capital investment in the range of $4.2 to $4.6 billion for the year 2018.
This investment will primarily be used to fund Anadarko’s portion of the costs associated with preparing the site of the future LNG Park, Anadarko said in its latest capital program.
Speaking of the plan, Anadarko chairman, president and CEO, Al Walk
er, said the company will focus on succeeding in a market where “oil prices exhibit volatility in a $45-$60 environment, with gas averaging $3 per Mcf.”
The company has also increased its sales volumes expectations from the current outlook of 224 – 228 mmboe for 2017 to 245 – 255 mmboe in 2018.
Earlier this month, Anadarko said it has reached a 20-year sales and purchase agreement for 2.6 million tons of LNG per year with Thailand’s PTT, the first among over 8 mtpa non-binding offtake deals to advance.
The company’s first long-term deal for the project has been approved by PTT’s board and is currently pending approval by the Thai government, Anadarko said.
Anadarko and its partners have discovered more than 75 Tcf of natural gas resources in the Prosperidade and Golfinho/Atum complexes in Mozambique’s Offshore Area 1, which will be used to feed an onshore LNG terminal on the Afungi peninsula in Cabo Delgado province.
The discovered reserves in Mozambique are sufficient to support two initial LNG trains, each with a capacity of 6 million tons per annum, as well as to accommodate expansions, including additional trains capable of producing about 50 million tons of LNG per year.