Anadarko Considering Non-Oil Price Index for Mozambique LNGChou Hui Hong
Anadarko Petroleum Corp., the U.S. energy explorer that made the decade’s biggest natural gas discovery off Mozambique, may consider price indexes other than oil for the liquefied natural gas from the project.
“We think there’s a number of ways the price can be derived,” Steve Hoyle, the company’s vice president for LNG marketing, said at a conference in Singapore today. “It could be oil-linked predominantly. It could also be a hybrid price.”
Anadarko, which now sells LNG based only on oil-linked pricing, aims to produce its first cargo from the east Africa project in 2018, Hoyle said. The Woodlands, Texas-based company is marketing LNG from the site to 10 Asian countries.
Mozambique may become the world’s largest LNG producer after Australia and Qatar in as little as 10 years, Dan MacLiver, Anadarko’s vice president of international operations, said Oct. 10. The nation’s gas industry may attract as much as $30 billion in investment from 2013 to 2018, according to the local unit of Standard Bank Group Ltd.