TAIPEI (Taiwan News) – Taiwan’s state-owned energy company CPC Corp announced on May 13 that CPC and Japan’s JERA have signed a joint long-term deal to purchase liquefied natural gas (LNG) from Mozambique in east Africa.
The two companies will jointly purchase 1.6 million tons per annum (mtpa) of LNG for 17 years from Mozambique LNG1 Company, which will begin operations in 2024.
CPC Vice President J.Z. Fang (方振仁) told Central News Agency that the company will import 600,000 tons of LNG per year under the purchase deal, accounting for 3.5 percent of its 16.8 mtpa of LNG imports.
JERA is a joint venture between Japanese utility companies TEPCO Fuel & Power and Chubu Electric Power. It is Japan’s biggest thermal power generator and one of the world’s largest buyers of LNG, according to CPC.
This is the first co-purchase deal with an overseas partner on a long-term basis for both JERA and CPC. Under this Sale and Purchase Agreement (SPA), JERA and CPC may flexibly exchange LNG, depending on each other's supply and demand balance.
CPC remarks that the joint purchase represents a cross-boundary LNG alliance in Asia Pacific.
For decades, CPC has cooperated closely with Japanese and Korean LNG importers. The new joint purchase will help CPC to further achieve the flexibility of operation in dealing with the growing uncertainty of domestic gas demand in order to ensure the stability of supply into Taiwan’s market.
Mozambique’s LNG project is the country’s first offshore LNG facility development project, led by Anadarko, a U.S. independent oil and gas producer, according to LNG World News.