Marketing

The Sale and Purchase Process

8+ MMTPA Non-Binding HOAs Secured

Mozambique's natural gas resources are ideally suited for a large-scale LNG development. Due to the significant investments associated with the development of an offshore natural gas field and construction of an onshore LNG facility, Mozambique LNG plans to secure long-term LNG sales/marketing agreements with buyers and ensure LNG shipping agreements are in place to economically support the project.

The LNG Sale and Purchase Agreement (SPA) is the contractual commitment between a seller and a buyer which specifies terms such as volume commitment, pricing, delivery point, and delivery profile. The project aims to secure longer term SPAs that are built upon the foundations of the seller’s gas reserves and the long-term creditworthiness of buyers necessary to secure project funding. Typical buyers of LNG include major end-users (gas utilities, power companies, large industrial users) as well as foreign government-controlled aggregators or distributors.

Image: Sales and Purchase Agreements

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