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Taiwan, Japan firms partner to buy LNG from Mozambique

2019/05/13 17:26:41

Image taken from Pixabay for illustrative purpose only

Taipei, May 13 (CNA) State-run oil refiner CPC Corp., Taiwan is partnering with JERA Co. of Japan, the world's largest importer of liquefied natural gas (LNG), on a 17-year deal to purchase LNG from the East African nation of Mozambique.

CPC and JERA said Monday that they will jointly buy 1.6 million tonnes of LNG per year from Mozambique LNG1, under a Sale and Purchase Agreement (SPA) signed by the three companies, when the company in Africa begins operations in 2024.

CPC Vice President J.Z. Fang (方振仁) told CNA that under the deal, his company will purchase 600,000 tonnes of LNG per year over a 17-year period, which will account for 3.5 percent of its total annual imports of that type of fuel.

Noting that Japan is a big importer of LNG, Fang said the joint procurement deal with JERA will allow both companies to obtain better prices and give them greater flexibility in terms of supply.

The partnership, the first by the two companies with an entity outside their own country, is also a good example of "regional cooperation," CPC said.

JERA, a joint venture between Tokyo Electric Power and Chubu Electric Power, is the world's largest importer of LNG, purchasing 35 million tonnes per year, according to CPC.

CPC, meanwhile, imported 16.8 million tonnes of LPG last year and has long-term purchasing contracts with Indonesia, Malaysia, Papua New Guinea and Qatar, among other countries, it website says.

Mozambique LPG, an investment project led by the American independent energy group Anadarko Petroleum Corp., is scheduled to begin operations in 2024 with two production lines and an annual output of 12.88 million tonnes.

Other countries that have signed up to purchase LPG from the Mozambique company over the long term are the Netherlands, France, Britain, Japan and China, according to CPC.

(By Liao Yu-yang and Elizabeth Hsu)