Japan’s Jera, the joint company of Tepco and Chubu Electric and the largest importer of liquefied natural gas, signed an agreement with Centrica for the sale of up to six cargoes per year.
The six cargoes per year will be delivered to the Isle of Grain LNG terminal in the U.K. for a period of five years starting in April 2019, Jera informed in its statement on Tuesday.
The price of LNG sold will be linked to European gas market price, with a volume flexibility at JERA’s discretion, the statement reads.
The Japanese company adds that it will optimize the SPA volume in cooperation with Centrica, securing flexibility to respond to LNG demand fluctuations.
The LNG sale and purchase agreement comes following discussions based on the memorandum of understanding with Centrica on collaboration in the LNG business, in such areas as utilization of LNG terminal capacity in the U.K., joint procurement of LNG and optimization of LNG vessels.
Earlier in September, Centrica signed a five-year deal to purchase up to 2 million tonnes of liquefied natural gas per annum from Qatargas.
Last week, Jera informed it has made its first purchase from the U.S. mainland, loading a cargo at Cheniere’s Sabine Pass LNG terminal in Louisiana.
LNG World News Staff