Engie, former GDF Suez, and Kansai Electric, a Japanese power production company, have agreed to enter into a partnership agreement on liquefied natural gas.
This agreement will provide shipping optimization and other commercial and marketing opportunities in Europe and in other LNG markets to the benefits of Kansai and Engie, the companies said in a statement.
Engie will purchase 0.4 million tons per annum of LNG from Kansai’s North American LNG. Depending on markets conditions, Engie could then sell an equivalent amount of LNG to Kansai Electric in Japan.
The transaction will start in 2019 for an initial period of four years which can be extended up to 20 years.
Engie will manage these agreements – purchase, sale and shipping agreements – within its own diversified LNG portfolio.