MAPUTO (Capital Markets in Africa) – Anadarko Petroleum Corp. moved nearer to greenlighting a natural-gas project in Mozambique as it struck a deal to sell some of the fuel to Thailand’s national energy company.

PTT Pcl will buy 2.6 million tons a year of liquefied natural gas under a long-term contract starting in 2023, Chief Operating Officer Wirat Uanarumit said Monday in Bangkok. That’s about a quarter of the amount that must be contracted to bring the project to fruition.

After making its initial Mozambique discovery six years ago, Anadarko has yet to announce a final investment decision on its plan for exporting the fuel. The U.S. explorer, which, like peers, is contending with a global glut of gas, said last year it’s willing to be flexible over destination and pricing to entice customers to sign supply contracts.

The Mozambique project needs to secure long-term sales and purchase agreements, or SPAs, for about 9 million to 11 million tons of fuel a year to obtain the necessary funding, according to a website detailing the plan.

“We anticipate a final investment decision once sufficient SPAs and financing arrangements are concluded,” Anadarko said in an email. The SPA signed with PTT will now be submitted to Thailand’s government for approval, it said.

PTT Exploration & Production Pcl, a subsidiary of the Bangkok-based company, owns an 8.5 percent stake in Anadarko’s Rovuma basin project off Mozambique’s northern coast.

Source: Bloomberg Business ‘News