PTT Exploration and Production Public Company Limited (PTTEP) revealed that Mozambique LNG1 Company Pte. Ltd., the jointly owned sales entity of PTTEP and other partners of the Mozambique Rovuma Offshore Area 1 project, has signed a Heads of Agreement (HOA) with Tokyo Gas Co., Ltd. (Tokyo Gas) and Centrica LNG Co., Ltd. (Centrica) for the long-term supply of Liquefied Natural Gas (LNG). The co-purchasing off-take agreement calls for the delivered ex-ship supply of 2.6 million tonnes per annum (MTPA).

'The off-take agreement of the significant sales volume with both firms marks another important progress of the Mozambique Rovuma Offshore Area 1 project. The conversion of this non-binding commitment into fully termed Sale and Purchase Agreements (SPA) in the future will support the Final Investment Decision (FID) of the project,' said Phongsthorn Thavisin, PTTEP's President of Exploration and Production.

The HOA signing with Tokyo Gas and Centrica takes full advantage of Mozambique's favorable central location, which enables Mozambique LNG to supply customers in both the European and Asian-Pacific markets. The partners in the Mozambique Rovuma Offshore Area 1 project earlier entered into a long-term SPA with a Europe-based client - Électricité de France, S.A. (EDF) - an integrated electricity company headquartered in France. The off-take agreement calls for the supply of 1.2 million tonnes per annum (MTPA) for a term of 15 years.

The Mozambique Rovuma Offshore Area 1 project is one of PTTEP's key natural gas projects as the company continues to consider investments in new potential areas with competitive cost structure. The project will be Mozambique's first onshore LNG development, initially consisting of two LNG trains with a total nameplate capacity of 12.88 MTPA to support the development of the Golfinho/Atum fields located entirely within Offshore Area 1.

About Mozambique Rovuma Offshore Area 1 Project
The Mozambique Rovuma Offshore Area 1 Project is a large gas project located in offshore Mozambique consisting of Prosperidade field, Golfinho-Atum field, Orca field, Tubarao field and Tubarao-Tigre field with substantial recoverable natural gas resources of approximately 75 trillion cubic feet (TCF) and potential to become one of the world's largest emerging LNG supply hubs.

The joint venture partners of Mozambique Rovuma Offshore Area 1 project comprise of PTTEP Mozambique Area 1 Limited, a subsidiary of PTTEP with 8.5 percent of participating interest, Anadarko Mozambique Area 1 Lda, the operator, with 26.5 percent, ENH Rovuma Area Um, S.A. with 15 percent, Mitsui E&P Mozambique Area 1 Ltd. with 20 percent, ONGC Videsh Ltd. with 10 percent, BEAS Rovuma Energy Mozambique Limited with 10 percent and BPRL Ventures Mozambique B.V. with 10 percent.

For more information, please contact Media Management Section
Tongchit Pongorapin Tel. +66 (0) 2537 4587
 Kamolwan Chintarat Tel. +66 (0) 2537 4381
Nalin Viboonchart Tel. +66 (0) 2537 4834
 E-mail: PTTEPCorpCom@pttep.com Website: http://www.pttep.com
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The information, statements, forecasts and projections contained herein reflect the Company's current views with respect to future events and financial performance. These views are based on assumptions subject to various risks. No assurance is given that these future events will occur, or that the Company's future assumptions are correct. Actual results may differ materially from those projected.

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PTT Exploration & Production pcl published this content on 15 June 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 15 June 2018 08:17:01 UTC