Chubu Electric Power Co., Inc. (“Chubu Electric”) announced it had reached agreement for basic terms and conditions to purchase LNG with BG Group plc (“BG Group”).
The agreement relates to Chubu Electric’s purchase of LNG supplied from BG Group’s global LNG portfolio. It is the first time that Chubu Electric has agreed to LNG portfolio supplies (which do not limit the source of supply to a particular project) under a long term contract.
BG Group’s global LNG portfolio includes the Queensland Curtis LNG (“QCLNG”) project which will supply super lean LNG produced from coal bed methane (“CBM”*1) gas. Chubu Electric is the first Japanese electric power company to agree to purchase LNG derived from CBM on a long term basis.
Chubu Electric is to purchase up to 120 cargoes (ie. up to 8.4 million tonnes if a 140,000 cubic metre capacity vessel is used) over 20 years commencing 2014 on Ex-Ship basis. Chubu Electric believes this LNG supply from BG Group’s portfolio and the high potentiality of the Australian CBM project will contribute to its stable LNG procurement.
Chubu Electric and BG Group intend to complete and execute the fully termed LNG sales and purchase agreement in the first half of 2011.
[mappress]
Source: Chubu Electric Power Co. , October 29, 2010;