Tokyo Gas and Centrica break mould in Mozambique LNG deal

TOKYO: Britain’s Centrica and Japan’s Tokyo Gas aim to buy liquefied natural gas (LNG) from Anadarko Petroleum’s $20 billion (£15 billion) project in Mozambique, the first joint procurement deal designed to defuse risks facing the buyers in their respective markets.
The deal also brings Anadarko one step closer to constructing its East African LNG project just as it corrals $14 billion to $15 billion from banks and export credit agencies for the 17,000-acre liquefaction complex in Mozambique’s remote north.
Lenders require Anadarko to fix at least 8.1 million tonnes (mt) of the project’s 12.88 mt total annual output in long-term sales deals to guarantee project revenues.
The preliminary agreement between Centrica and Tokyo Gas for 2.6 mt of LNG annually brings Anadarko’s total supply tally to 7.7 mt, via a mix of binding and non-binding deals.
Deliveries will commence once Mozambique LNG starts operations, expected to be in the early- to mid-2020s and last until the early 2040s, the companies said.
The main destinations are Tokyo Gas’ four terminals in Japan and Centrica’s terminal at Britain’s Isle of Grain, but the two firms also have the right to ship cargoes to other destinations, Centrica Vice President, LNG Business Development, David Dunlavy said in Tokyo during a joint news conference.
How much each company will buy has not yet been decided, Tokyo Gas Executive Officer Takashi Higo said in a statement. — AFP