Tokyo Gas and Centrica sign SPA from Mozambique LNG project

Tokyo Gas and Centrica have signed a sale and purchase agreement (SPA) for the long-term offtake of 2.6mn t/y of LNG from the Mozambique LNG project, from the start-up of production until the early 2040s. The agreement provides the project with key foundation customers which will support the final investment decision (FID) by the Mozambique Area 1 joint venture partners, targeted for 1H2019.

The joint procurement approach takes full advantage of Mozambique’s central location between Europe and Asia, assisting both companies to access diverse markets and proactively manage demand fluctuations across regions with different market dynamics. It also represents the first long-term LNG procurement contract in Africa for both Tokyo Gas and Centrica in line with ongoing efforts to further diversify their respective portfolios of LNG sources. This will improve the liquidity and further develop the global LNG market.

The Mozambique Area 1 joint venture partners comprise Anadarko (26.5%), Mitsui E&P (20%), ENH Rovuma Área Um (15%), ONGC Videsh (10%), Beas Rovuma Energy (10%), BPRL Ventures (10%) and PTTEP (8.5%).