Japan’s LNG importing giant JERA signed a heads of agreement with Diamond Gas International, a Mitsubishi Corporation company, for the sale and purchase of the chilled fuel from LNG Canada project.
The contract is for the purchase of up to 16 cargoes of LNG a year for approximately 15 years beginning in fiscal 2024.
This first procurement of LNG from Canada diversifies JERA’s supply portfolio and can be expected to contribute to stable and economical LNG procurement in the future, JERA said in a statement.
The destination clause in this HOA is in line with the Survey on LNG Trades report released by the Japan Fair Trade Commission in June 2017, and JERA believes this will help it respond appropriately to LNG supply and demand uncertainty and expand opportunities for optimizing its LNG portfolio.