From Bloomberg
Japan’s Prime Minister Shinzo Abe may seek to secure natural gas supplies from Mozambique during a three-nation African tour this week, the first visit to the continent by a Japanese leader in almost eight years.
Japan, the world’s biggest importer of liquefied natural gas, has been seeking new energy sources after the Fukushima nuclear disaster. The world’s third-largest economy has been without nuclear power, which accounts for about a quarter of its energy needs, since September as all of the country’s 50 reactors have been shut pending safety reviews.
“Since the Fukushima accident, Japan’s imports of natural gas for electricity generation have risen enormously, including from Africa,” Katsumi Hirano, head researcher at the Institute of Developing Economies, an affiliate of the Japan External Trade Organization in Chiba Prefecture, said in a phone interview on Jan 8. “The development of natural gas is an extremely important matter for security and the national interest.”
Mozambique’s offshore fields may hold enough gas to meet global demand for more than two years, according to Empresa Nacional de Hidrocarbonetos, the national oil company.
The southern African nation, located on the east coast of Africa, plans to build four LNG units with a total capacity of 20 million metric tons a year by 2018, making it the largest LNG export site after Ras Laffan in Qatar. Chiyoda Corp. (6366), based in Yokohama, is among the companies bidding for contracts to construct the plants, which may cost $20 billion.
Written by Isabel Reynolds and Mike Cohen/Read more at Bloomberg