Regional LNG: GDF-Suez signs first long term LNG sales to Japan
Monday, May 19 2014 - 03:31 PM WIB
French firm GDF SUEZ and the Japanese utility company Tohoku Electric Power have signed a long term LNG sale and purchase Heads of Agreement (HoA), under which the former commits to deliver 270,000 tons per year (tpa) of liquefied natural gas (LNG) to the latter for a 20-year period starting in 2018.
The HoA was signed in Paris on May 16, 2014, GDF-Suez said in a statement on Monday.
Volumes will be supplied with natural gas from the U.S. which will be liquefied in the Cameron LNG plant. GDF SUEZ will be one of the first companies to supply Asia with American LNG, thanks to its LNG carrier?s fleet and a diversified LNG portfolio.
The Cameron LNG export project which is developed by the consortium of GDF SUEZ, Sempra, Mitsubishi and Mitsui has received conditional approvals from the US Department of Energy (DOE) and partial agreement from the Federal Energy Regulatory Commission (FERC) and is likely to be finally sanctioned within the course of this year.
?This sales agreement seals our first long term LNG sale with a Japanese partner, as well as the emergence of US LNG contributing to Japan energy supply, thanks to the benefit of the shale gas revolution in America. Such a contract shows how GDF SUEZ strategy is right in the heart of the present world energy challenges.? Jean-Marie Dauger, Executive Vice-President of GDF SUEZ in charge of the Global Gas & LNG business line, said in the statement.
GDF SUEZ is a global LNG player and the main LNG importer in Europe. GDF SUEZ has the third largest LNG supply portfolio in the world, supplied from six different countries, and representing 16 million tons per year. It controls a large fleet of 14 LNG carriers under mid and long term charter agreements. The fleet is permanently optimized to satisfy GDF SUEZ long term commitments and short term opportunities. The Group has also a significant presence in regasification terminals around the world, including FSRU?s and in liquefaction projects.
Editing by Johannes Simbolon