SET-listed PTT Exploration and Production (PTTEP) announced yesterday that Mozambique LNG1 Company Pte Ltd, the jointly owned sales entity of PTTEP, and other partners in the Mozambique Rovuma Offshore Area 1 project have entered into a long-term liquefied natural gas (LNG) sale and purchase agreement with Electricite de France (EDF), an integrated electricity company headquartered in France.
The offtake agreement calls for the supply of 1.2 million tonnes a year for a term of 15 years.
"PTTEP wants to expedite the development of the Mozambique Rovuma Offshore Area 1 as one of the world's leading greenfield projects to increase our petroleum reserves," said Phongsthorn Thavisin, PTTEP's president of exploration and production.
The latest collaboration with EDF, one of the world's largest electricity utilities, is another important milestone for the project, he said.
In addition, the sale and purchase agreement gives Mozambique LNG flexible access to Europe, a key strategic market.
The project continues to advance additional LNG offtake agreements to support the company's investment decisions. The EDF sale is included in the portfolio of sales for more than 5 million tonnes a year, for which the joint venture partners and buyers have already agreed to key terms.
The Mozambique Rovuma Offshore Area 1 project is one of PTTEP's main natural gas projects, as the company continues to consider investments in new areas with competitive cost structures.
The project will be Mozambique's first onshore LNG development, initially consisting of two LNG trains with total nameplate capacity of 12.9 million tonnes a year.
