Texas-based firm, Anadarko Petroleum says it is in talks with newly formed Japanese consortium Jera to sign a contract for long term supply of natural gas extracted in Mozambique.
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.
According to media reports, 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.
According to APA, 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 $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.
Anadarko’s gas finds in Area 1 of Mozambique’s Rovuma Basin will feed the initial 10 million tonnes per annum, mtpa, $23 billion LNG export project, which is due to start by 2021