Regional LNG: Shell signs LNG sales deal with Chubu Electric

By Romel S. Gurky

Shell Eastern Trading (Pte) Ltd, a Singapore-based subsidiary of Royal Dutch Shell, signed a sales and purchase agreement Thursday with Chubu Electric Power Co., Inc. to supply up to 12 cargoes of LNG a year for the next 20 years.

Chubu Electric supplies power to central Japan?s Chubu region, a major manufacturing hub.

Shell said in a statement it will begin supplying liquefied natural gas (LNG) to Japan?s third largest electric company from October 2014, in a deal that reinforces Shell?s position as a key LNG supplier in the country.

?Shell has a long history of supplying natural gas to Japan, and this agreement demonstrates our continued commitment to the country, ?said Maarten Wetselaar, Executive Vice President, Shell Integrated Gas.

?It further underlines our strength in the LNG market as we mark our 50th year in LNG. As one of the world?s largest LNG producers and marketers, with a strong, diverse portfolio, we are well positioned to respond flexibly to short term changes in demand and help ensure security of supply for the companies and countries we work with.?

This agreement is the first long-term LNG deal directly between Shell and Chubu Electric Power Co., Inc (Chubu), a key customer in Japan, the statement said.

Editing by Reiner Simanjuntak