JERA Concludes HOA for Sales and Purchase of LNG from LNG Canada

Source Press Release
Company JERA Co., Inc.Chubu Electric Power CompanyKorea Gas CorporationMitsubishi CorporationPetroChinaPetronasRoyal Dutch ShellTokyo Electric Power Company Holdings Inc. 
Tags Oil & Gas Trading, LNG & Gas Storage/Processing
Date April 09, 2019

JERA Co., Inc. (“JERA”) is pleased to announce that it has entered into a Heads of Agreement (“HOA”) with Diamond Gas International Pte. Ltd., a subsidiary of  Mitsubishi Corporation, for the sale and purchase of LNG 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.

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.

JERA will continue to maximize its enterprise value and its ability to respond flexibly to changes in the business environment by building an appropriate LNG portfolio and optimizing its operations.

Outline of HOA

Seller: Diamond Gas International Pte. Ltd.

Buyer: JERA Co., Inc.

Contract period: Approx. 15 years starting FY2024

Contract volume: Up to 16 cargoes per year (Approx. 1.2 million tons per year)

Delivery mode: DES

Source: EvaluateEnergy® ©2019 EvaluateEnergy Ltd