The first phase of the project for natural gas exploration in Area 1 in the Rovuma basin in northern Mozambique, should be completed by 2021, with an annual output of 12 million tons, said the President of Thai company PTTEP.
Somporn Vongvuthipornchai, who is also the chief executive of Exploration and Production, told the Bangkok Times newspaper that of that total 3.6 million tons of natural gas will be delivered to Thailand by the parent company of the group, PTT, the national petrochemical conglomerate.
In May 2012 PTTEP acquired a stake of 8.5 percent owned by Irish company Cove Energy for US$1.92 billion in a consortium in which US group Anadarko Petroleum is the operator.
Somporn Vongvuthipornchai said that the US group is currently involved in negotiating gas purchase agreements on the gas to be extracted as well as setting up the project’s financial structure.
The launch of tenders for engineering design, procurement of materials and equipment as well as construction will take place soon.
The CEO of PTTEP said the Area 1 project area in the future would be an important source of natural gas for Thailand, when the country has to start importing 22 million tons of gas per year compared to 4 million tons at the moment.
Structural changes in the global natural gas market, marked by the entry of new producers and exporters, should not stop Mozambique from preparing its entry into this market, said Wednesday in Maputo president of state oil and gas company ENH.
Omar Mitha cited by Mozambican news agency AIM, said the market is going through a period marked by a relative excess of supply compared to demand, but added that statistics show that demand and energy consumption will increase, with some countries that want to exchange more polluting energies with other cleaner options, specifically natural gas.
Mitha was speaking on the sidelines of the opening session of the 5th edition of the Mozambique Mining, Oil and Energy Conference (MMEC) in Maputo, which brings together several experts from Mozambique and abroad to share experiences and views on the future of the Mozambican energy sector.
Organised by AME Trade in partnership with ENH and the Geological Mining Association of Mozambique with the support of the Ministry of Mineral Resources and Energy, the event provides a platform for a deeper dialogue between regulators, investors and experts from the energy industry to promote the sustainable use of Mozambique’s resources.
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