Anadarko deal sends LNG to JERA, CPC

ReutersSINGAPORE (Reuters) — Anadarko Petroleum Corp. said 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 tons per annum of LNG to be delivered ex-ship for 17 years from the commercial start of operations on a project in Mozambique.

JERA said in a separate statement that this marked its first copurchase with an overseas partner on a long-term basis and that under the deal, JERA and CPC may exchange LNG flexibly depending on each other’s supply and demand needs.

A European gas price index will be used as part of the contract price formula for the agreement, JERA said.

JERA also said that the destination clause in the agreement was in line with a report on LNG trading released by the Japan Fair Trade Commission in June 2017, without elaborating further.

“This copurchase 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 Monday.

JERA, a joint venture between Tokyo Electric Power and Chubu Electric Power, is Japan’s biggest thermal power generator and the world’s biggest buyer of LNG.Speech

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