CPC, Japan’s JERA sign deal to co-purchase LNG from Mozambique

2019/05/15

CPC Corporation, Taiwan, is partnering with Japan’s JERA Co. Inc. on a long-term agreement to procure liquefied natural gas from Mozambique, the state-run energy supplier announced May 13.
 
 Under the accord inked with Mozambique LNG1 Company Pte. Ltd., CPC and JERA will co-purchase 1.6 million tonnes per annum (MTPA) for a base term of 17 years from the commercial start date of the LNG project. The development in the East African country is scheduled to begin operations in 2024, according to the petrochemical firm based in southern Taiwan’s Kaohsiung City.
 
 This marks the first time that CPC and JERA have concluded a long-term co-purchase deal with an international partner, the Taiwan company said, adding that the pact underscores its commitment to diversifying the nation’s overseas energy sources and ensuring the stability of domestic power supplies.
 
 Collaboration with JERA will also strengthen Taiwan-Japan exchanges in this field, lower costs, and provide greater flexibility for both sides by facilitating LNG transfers in accordance with their respective supply needs, CPC said.
 
 The project in Mozambique Offshore Area 1 is spearheaded by U.S.-headquartered Anadarko Petroleum Corp. It comprises the African country’s first onshore LNG facilities, consisting initially of two trains, or processing sites, capable of outputting 12.88 MTPA.
 
 Established in 1946, CPC is the leading supplier of petroleum products in Taiwan. The company recorded a market share of about 70 percent and revenues totaling NT$896.6 billion (US$28.8 billion) in 2017.

Source: Taiwan Today (https://taiwantoday.tw/index.php)