International: INPEX signs agreement with Chubu Electric for Naoetsu LNG Terminal

By Romel S. Gurky

INPEX Corporation announced that it has signed an LNG Sales and Purchase Agreement with Chubu Electric Power Company, Inc. to purchase LNG for Naoetsu LNG Terminal, Joetsu City, Niigata Prefecture (at the Naoetsu Port area), Japan, which is currently under construction.

Under the agreement, INPEX will, for a period of approximately 5 years from 2013, purchase 17 LNG cargoes (approximately 1 million tons of LNG) from Chubu Electric.

INPEX plans to import the LNG produced from its major overseas LNG projects, such as Ichthys LNG Project in Australia (operated by INPEX), and establish a ?Gas Supply Chain? through INPEX?s domestic pipeline network.

In order to secure LNG for the period until the Ichthys LNG Project to start its production, INPEX has executed the LNG SPA with Chubu Electric.

Naoetsu LNG Terminal will start commissioning in August 2013 and commercial operation early next year. After the commercial start-up, INPEX?s natural gas supply chain will be reinforced by the gas which INPEX develops and produces overseas in addition to the gas produced in Japan.

Editing by Dadan Wijaksana