Mining & Energy
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Anadarko Petroleum Corp said on Monday that a unit it jointly owns which markets gas from Mozambique has signed a long-term deal to supply liquefied natural gas (LNG) to Japan’s JERA and Taiwan’s CPC Corp.
This is its first long-term deal to be announced since the U.S. independent energy group said late last week that it had agreed to be acquired by Occidental Petroleum Corp in a $38 billion offer. The merger is expected to be completed in the second-half of the year.
The sales and purchase agreement with JERA and CPC is for 1.6 million tonnes per annum (mtpa) of LNG to be delivered ex-ship for 17 years from the commercial start of operations on a project in Mozambique.
“This co-purchasing agreement with JERA and CPC brings together two prominent Asian foundation customers and will ensure a reliable supply of cleaner energy to meet the growing demands of both Japan and Taiwan,” Mitch Ingram, Anadarko Executive Vice President, International, Deepwater & Exploration, said in a statement on Monday.
JERA, a joint venture between Japanese utilities Tokyo Electric Power and Chubu Electric Power, is Japan’s biggest thermal power generator and the world’s biggest buyer of LNG.
CPC Corp is currently the sole LNG purchaser for Taiwan.
Anadarko expects to announce a final investment decision for the $20 billion Mozambique LNG project on June 18, and said on Monday that it was on track to complete the project financing process and secure final approvals.
The latest LNG supply deal brings its total long-term agreements to 11.1 mtpa, the company added. Its previous deals include buyers such as utilities, major LNG portfolio holders and state companies.
Anadarko is developing Mozambique’s first onshore LNG facility consisting of two initial LNG trains with a total nameplate capacity of 12.88 mtpa to support the development of the Golfinho/Atum field located entirely within Offshore Area 1.
Anadarko Moçambique Área 1, Lda, a wholly owned subsidiary of Anadarko Petroleum Corp, operates Offshore Area 1 with a 26.5-percent working interest.
Its joint partners in the project include units of Japan’s Mitsui, Mozambique state energy company ENH, Thailand’s PTT and Indian energy firms ONGC Videsh and Bharat Petroleum Resources.Source: Reuters
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