An agreement has been reached today between Osaka Gas Co., Ltd. and Okinawa Electric Power Company, Inc. for a long-term sale and purchase of LNG. Following the signing of the heads of agreement in May 2010 on the key terms and conditions, the two companies inked the sale and purchase agreement (SPA).
According to the terms of the agreement, Osaka Gas, through its arrangement of vessels, supplies part of its LNG to Okinawa Electric’s power plant scheduled for commissioning in 2012.
Key terms of SPA
(1) Contract duration: 27 years commencing 2012
(2) Contractual volume: about 400,000 tons per annum
(3) Key LNG source: Gorgon Project (located in North West Australia)
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Source: Osaka Gas, February 22, 2011;