By BRADLEY OLSON
Anadarko Petroleum has inked deals to sell gas from
Mozambique at a hybrid price linked to both oil and US
natural gas prices, CEO Al Walker said.
The global explorer reported discoveries off the coast of
Mozambique that may contain 70 Tcf of natural gas. It has
signed initial agreements with some buyers to sell the gas
using a formula that combines Henry Hub and world oil prices
and factors in costs for shipping and treatment,Walker said.
The formula is producing a price for LNG,similar to the oil
linked indexes used now in Asian trading, he said at the
Howard Weil Energy Conference in New Orleans.
As a producer, Im not as sensitive to that as the
buyer, Walker said of the pricing
models.Were fairly indifferent between the
The price of gas sold from seaside export terminals has
emerged as a critical issue as the industry races to capture
markets in Asia where gas sells for five times more than in
North America. Producers are seeking deals linked to high
priced oil to justify project
s capable of liquefying the
gas for shipment and regassifying it that can cost as much as
Anadarko expects to see first production from the Mozambique
fields in 2018, and Walker has said the country will emerge
as the worlds third largest natural gas producer.