The Sale and Purchase Process

Sales & Purchase Agreements (SPAs)

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 SPAs with LNG buyers and ensure LNG shipping agreements are in place to economically support the project.

An SPA is the contractual commitment between a seller and a buyer which specifies terms such as volume commitment, pricing, delivery point and annual delivery profile as well as terms and conditions required for a long-term contract. The project aims to secure 9 to 11 MTPA of long-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 and large industrial users).

Mozambique will reserve some some production capacity to sell on a spot and/or short-term basis as well. 

The project's marketing efforts are currently managed out of Operator's headquaters in The Woodlands, Texas, and its Singapore office.

The project has also incorporated a Singaporean-based company called "Mozambique LNG1 Company Pte. Ltd." to be the seller counter-party on all SPAs.

All LNG will be sold on joint basis (not equity basis). 

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Image: Sales and Purchase Agreements