Japan’s INPEX has signed Heads of Agreements (HOAs) today with Japan’s Tokyo Electric Power Company, Inc. (TEPCO) and Japan’s Shizuoka Gas Company, Ltd. (Shizuoka Gas) for the sales and purchase of Liquefied Natural Gas (LNG) from the Prelude FLNG project in Australia.
INPEX is the parent company of INPEX Oil & Gas Australia Pty Ltd. (IOGA), a holder of an equity interest of 17.5% in The Project. The Project is being developed by a subsidiary of Royal Dutch Shell plc (Shell) utilizing Floating LNG (FLNG) technology.
This is the first time for INPEX to sell LNG the will produced from an FLNG project and represents an important milestone. Under the HOAs, INPEX has reached agreement for IOGA’s equity portion of The Project’s LNG output (approximately 0.63MTPA), with TEPCO to purchase approximately 0.56 MTPA of LNG and Shizuoka Gas to purchase approximately 0.07 MTPA of LNG for 8 years commencing in 2017, both using “Delivered Ex Ship” trade terms.