BP signs deal to purchase all liquefied natural gas from Mozambique facility

BP recently signed a 20-year sales and purchase agreement with the Area 4 concession partners — Eni East Africa (EEA), Galp Energia (Galp), Kogas and Empresa Nactional de Hidrocarbonetos (ENH) —  for BP to purchase all liquefied natural gas (LNG) produced at the Coarl South Floating LNG facility to be installed off the Mozambique coast.

The Coral South Floating LNG facility will be operated by EEA and has an expected capacity of more than 3.3 million tons per year.

The project has not received its final investment decision (FID), though it is expected before the end of the year. While approved by the government of Mozambique, the agreement between BP and the Area 4 concession partners is dependent upon the FID.

“BP is pleased to play a key role in enabling Mozambique to be an LNG exporting country,” BP Supply and Trading Business Chief Executive Paul Reed said. “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.”

BP plans to use LNG purchased under the agreement to meet its international supply commitments.