Japanese utility, Kansai Electric Power decided to establish an LNG trading unit in Singapore as it looks to strengthen its LNG procurement and sales.
In its statement on Monday, Kansai Electric noted that it has been looking to create a structure that will allow it more flexibility in terms of purchasing LNG at lower prices and selling it when needed. It further noted that the spot LNG contracts are becoming a more important tool in responding to demand changes.
Singapore has over the recent years become an LNG trading center, Kansai Electric said, adding that the newly established company has the aim to secure LNG contracts with more favorable conditions.
The company will be established in April this year and will handle the majority of the utility’s spot LNG contracts and aim to improve the company’s competitiveness in both the procurement and sales of LNG.