BP has signed an LNG and purchase agreement offshore Mozambique.
The move has been made in line with the company’s Area 4 concession partners, Eni East Africa, Galp Energia, Kogas and Empresa Nactional de Hidrocarbonetos.
The partners will purchase 100% of the LNG purchased by the EEA-operated Coral South Floating LNG facility.
The agreement covers the purchase of LNG for over 20 years.
Paul Reed, chief executive of BP’s supply and trading business, said: “BP is pleased to play a key role in enabling Mozambique to be an LNG exporting country. The agreement adds to the diversity of our natural gas portfolio beyond the end of the decade, further enhancing our ability to meet the needs of our customers.”
The agreement, which has been approved by the government of Mozambique, is conditional on the Final Investment Decision (FID) being taken for the project, which is currently expected by the end of 2016.
The Coral South Floating LNG facility is expected to have a capacity above 3.3 million tonnes per annum.
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