Chubu Electric and BG Group sign 21 year LNG sales and purchase agreement

abarrelfullabarrelfull wrote on 06 May 2011 07:03
Tags: bg-group chubu japan lng

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Chubu Electric Power Co., Inc. ("Chubu Electric") announced it had executed a fully termed LNG sales and purchase agreement with BG Group ("BG Group").

The agreement is for Chubu Electric to purchase LNG supplied from BG Group's global LNG portfolio including the Queensland Curtis LNG ("QCLNG") Project under development by BG Group's wholly owned Australian subsidiary QGC Pty Limited ("QGC"). This represents a first for Chubu Electric to receive LNG on a long term basis from a portfolio supplier which will not limit the source of supply to a particular project.

BG Group's QCLNG project will produce super lean LNG sourced from coal bed methane ("CBM"*1) gas. Chubu Electric is the first Japanese electric power company to agree to purchase LNG derived from CBM on long term basis.

Chubu Electric is to purchase up to 122 cargoes (ie. maximum of 8,540,000MT if a 70,000MT capacity vessel is used) over 21 years commencing 2014 on Ex-Ship basis.

Chubu Electric believes this LNG supply from the variety of BG Group's portfolio sources including BG Group's CBM project in Australia, QCLNG, will contribute to the procurement of stable and flexible LNG supply.

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