Japan's JERA signs supply deal with Canada LNG project
JERA, the world's top buyer of liquefied natural gas, said it had signed an agreement with a Mitsubishi Corp unit to buy up to 16 cargoes, or 1.2 million tons per year (Mtpy), of LNG from the LNG Canada project.
The heads of agreement (HOA) signed between JERA and Diamond Gas International is for about 15 years from the business year starting from April 2024, said JERA, a joint venture between Tokyo Electric Power and Chubu Electric Power.
The deal will be the first time JERA procures LNG from Canada, it said in a statement.
JERA also said that the agreement was in line with the Japan Fair Trade Commission ruling in June 2017, which declared so-called destination restriction clauses to be anti-competitive and called for destination flexibility in LNG contracts.
The C$40 billion ($30 billion) LNG Canada project led by Royal Dutch Shell was given the go-ahead by the Anglo-Dutch giant and its partners in October last year, making it the fuel's first major new project to win approval in recent years.
Buyers from the project so far include trading house Vitol as well as Asian utilities such as Tokyo Gas , Toho Gas and Korea Gas Corp (Kogas). ($1 = 1.3313 Canadian dollars) (Reporting by Yuka Obayashi in TOKYO; Additional reporting by Jessica Jaganathan in SINGAPORE; Editing by Richard Pullin and Joseph Radford)
On the changing landscape of global natural gas trade, the US has magnified its export power by remaining a net exporter for 13 months as of February 2019.
EWAnalysis: US LNG producers eye major growth
- Energy Web Atlas
The US LNG market has experienced rapid growth over the past decade due to the availability of inexpensive feedstock and increased worldwide demand.
Regional Focus: Nigeria moves to expand its liquefaction capacity
The award in July 2018 of long-awaited contracts for the front-end engineering design (FEED) of Nigeria’s Train 7 gas plant expansion project to two consortia is the country’s latest attempt to address the enormous challenges of gas flaring and gas shortages for power plants and domestic consumption.
Reliable Operations & Saving OPEX for Gas Plant Refrigeration – Selecting the right technologies
By selecting integrally geared turbocompressors for gas plant refrigeration duty coupled with a mag bearing turboexpander, operators get the added values of technology with highly reliable operations and reduced OPEX. Join Sami Tabaza and Chris Blackmer from Atlas Copco Gas and Process for a presentation followed by Q&A surrounding the turbocompressor and turboexpander technologies that can efficiently and reliably fit your gas plant design and operation to get the advantages of both technologies.
June 18, 2019 10:00 AM CDT