Natural gas from Mozambique will supply the Japanese market

26 June 2015

US group Anadarko Petroleum is in talks with newly formed Japanese consortium Jera to sign a contract for long term supply of natural gas extracted in Mozambique, Reuters reported.

Jera is a consortium set up last April by Tokyo Electric Power Co (Tepco) and Chubu Electric, the biggest and third-biggest electricity suppliers in Japan, to try to lower the price paid for liquefied natural gas.

A spokesman for the consortium confirmed the negotiations had been “underway for some time,” but added that other negotiation processes with potential natural gas suppliers were also taking place.

Signing a long-term contract with the Japanese consortium may be key to a final investment decision on the project in Mozambique, with an estimated cost of US$20 billion.

Jera is already processing all its new natural gas supply contracts for the two companies but from 2016 it will be responsible for all purchase contracts, amounting to 40 million tons per year.

In 2014 Anadarko Petroleum signed a non-binding agreement with Japanese company Toho Gas to supply 0.3 million tons per year of natural gas extracted in Mozambique. (macauhub/MZ)