Tepco and Chubu Electric’s JV, Jera on Friday informed it has signed heads of agreement with Shizuoka Gas for the sale of liquefied natural gas.
Jera is set to deliver one cargo of 70,000 metric tons of LNG each year to Shizuoka Gas’ Shimizu LNG terminal during a five-year period starting in 2022, according to the company statement.
Under the agreement, LNG price will be linked to the US natural gas market index, and supplied from Jera’s portfolio.
Shizuoka Gas added in its statement that it is also allowed to divert cargoes to other destinations in order to adjust its LNG supply and demand balance or for LNG trading.
Both parties added that talks will continue in order to conclude an unconditional LNG sale and purchase agreement.
LNG World News Staff