Anadarko Holds Talks With Japan Over Mozambique LNG SupplyPaul Burkhardt
Anadarko Petroleum Corp. said it’s in talks with potential customers in Japan to buy supplies from a joint liquefied natural gas plant in Mozambique it’s planning with Eni SpA.
“We are advancing efforts with selective companies in Japan and we’re hopeful that the policy uncertainty around nuclear power and U.S. exports does not cause them to miss out,” said Steve Hoyle, vice president of LNG marketing for the Woodlands, Texas-based company. “None of those things are going to be clarified anytime soon.”
Japan’s Prime Minister Shinzo Abe said last month he’ll restart reactors once safety measures are in place in the face of public opposition after the Fukushima disaster. An abundance of shale gas discoveries in the U.S. has divided opinion over exports.
Mozambique’s offshore fields may hold as much as 250 trillion cubic feet of gas, enough to meet world consumption for more than two years, according to national oil company Empresa Nacional de Hidrocarbonetos. Anadarko, the second-biggest U.S. independent oil and natural gas producer by market value, and Eni of Italy have said they may sell some of their assets in Mozambique to cut costs.
“We are currently in discussions with 20 customers in 10 countries,” Hoyle said at a gas conference in Maputo, the capital of Mozambique.
Anadarko and Eni awarded front-end engineering and design contracts for both onshore LNG construction and offshore installation last year. Engineering will focus on production units, also called trains, with a 5 million-ton-a-year capacity, according to Anadarko. The plant’s gas supply will be split evenly with Eni, Anadarko’s Chief Executive Officer Al Walker said in a Dec. 21 statement.
Bechtel Group Inc. and ventures between JGC Corp. and Fluor Corp., and Chicago Bridge & Iron Co. and Chiyoda Corp., will design the LNG plant, according to Anadarko.