Osaka Gas of Japan is looking to sell surplus amounts of liquefied natural gas it will have in the short to medium term, according to the utility’s president Takehiro Honjo.
Speaking at a media conference, Honjo added that Osaka Gas overcommitted LNG in the short to mid-term, however, he did not reveal the amount of surplus LNG as the demand remains uncertain, Platts reports .
Volumes could be sold at both domestic and international markets, Honjo added.
Additionally, Osaka Gas is looking to strengthen its LNG value chain and bring LNG from the upstream projects it has invested in to the utility’s domestic power generation projects or LNG terminals and power generation project abroad. Projects in Southeast Asia are a likely target, Honjo said, according to Platts.
Investment in upstream projects could be increased as the company is looking to up its overall LNG procurement from equity from less than 10 percent to 30 percent.
The utility expects its LNG consumption to remain at around 6.9 million tons from the fiscal year 2016 to 2021.
Osaka Gas noted in its five-year business plan that it expects the demand for natural gas to reach 8.47 million cubic meters in FY 2021, with an annual growth of 1 percent over the five-year period.
LNG World News Staff