Under the agreement, Jera will supply two to three LNG cargoes per year, equivalent to approximately 130,000 to 200,000 metric tonnes annually, on a delivered ex-ship (DES) basis from its extensive global LNG portfolio, the company said on Thursday.
This contract term is seven years, beginning in 2027.
The joint venture of Tepco and Chubu Electric did not provide further details regarding the agreement.
By supplying LNG to Hokkaido Gas, a key regional energy provider, Jera “contributes to reinforcing Japan’s energy security and enhancing supply resilience.”
This agreement also supports Jera’s efforts to diversify its LNG sales portfolio while strengthening the stability and flexibility of LNG supply for Japan’s domestic energy market, it said.
Looking ahead, Jera said it will continue to build a balanced LNG portfolio across the Asia, Middle East, and the United States to strengthen resilience against market volatility.
“Leveraging the trading, optimization, and LNG operational capabilities developed through Jera Global Markets, the company aims to enhance cost competitiveness and deepen collaborations with Japanese domestic energy partners and further expand its LNG sales across the Asian markets,” it said.
Before this SPA, Jera signed a long-term LNG supply deal with India’s Torrent Power, Jera’s first long-term SPA to supply LNG outside Japan
Under the 10-year agreement, Jera will supply four LNG cargoes per year, approximately 270,000 tonnes per annum, on a delivered ex-ship (DES) basis from its LNG portfolio.
On the other hand, Japanese utility Hokkaido Gas recently loaded the 100,000th truck with liquefied natural gas at its Ishikari import terminal since the facility launched operations in 2012.
The 4.5 mtpa Ishikari LNG terminal has four LNG storage tanks with a total capacity of 840,000 cbm and reloading and truck loading facilities.
Hokkaido Gas shares the import facility with Hokkaido Electric Power, and the facility also supplies fuel to the nearby Ishikari power station.
Last year, Australian LNG player Santos agreed to deliver up to about 0.4 million tonnes per annum of LNG to Hokkaido Gas for 10 years, starting in 2027
In addition to the Ishikari facility, Hokkaido Gas is looking to build a new LNG import terminal in Tomakomai.
AloJapan.com