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Anadarko Ties Shell’s Hands in Mozambique

Wednesday, November 14, 2018

Anadarko Petroleum is being accused of tying the Mozambican government’s hands and by extension Shell’s too, by refusing to supply enough domestic gas in the first phase of the planned LNG project.

Shell says the US independent’srefusal to commit more gas supplies to the domestic market hinder its plans to build a 38,000 bpdGTL plant in Mozambique. The plant is expected to produce kerosene, diesel and naphtha from the bounty of natural gas discovered off the coast of Mozambique.

Anadarko is refusing to supply the needed feedstock until the second phase of the LNG project, which is not expected until at least 2031.

Anadarko will eventually supply 400Mmcm/d of gas domestically but could spare only 100Mmcm/d the first phase, expected to begin around 2025, as lenders were unwilling to allow the independent to certify additional reserves until production begins.