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Japan's Tohoku Electric Power Signs Deal to Purchase Mozambiquan LNG
= 1st SPA deal for Japanese buyers, purchase volume to be up to 0.28 mtpa =
Japan-based Tohoku Electric Power Company announced on 15th it has entered into an LNG sale and purchase agreement (SPA) with a Mozambique-based LNG production project, which is the first SPA deal with the project for Japanese buyers. This contract, also the first long-term LNG purchase deal for the Company with African countries, includes terms on flexible procurement volume based on the future demand/supply balance and will enable the Company to diversify procurement sources.

According to the announcement, it signed the deal with Mozambique LNG1 on 12th. Pursuant to the deal, it produces up to 0.28 mtpa of LNG on a DES basis over the course of 15 years from production start date that is expected to be in the early 2020s. Both companies inked a memorandum of understanding (MOU) on LNG trade on December 15th, 2017 and have been discussing details.

Mozambique LNG1 is invested by the project operator Anadarko Petroleum (26.5%), Japan's Mitsui & Co. (20%), Mozambiquan state-run ENH (15%), India's state-run ONGC (16%), Bharat Petroleum (10%), Thailand's PTT (8.5%), and Oil India (4%).

They plan to construct a 12.88-mtpa LNG production/export terminal consisting of two 6.44-mtpa gas liquefaction units in the early 2020s.
last modified : Mon 22 Oct, 2018 [11:10]
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