Japan’s Jera sells LNG to EDF Trading

For illustration only (Image courtesy of Tepco)

Japan’s Jera Co, a joint venture between Chubu Electric and Tepco, said it has agreed to sell the chilled fuel to EDF Trading, a unit of France’s EDF.

Under the deal, Jera, one of the world’s largest LNG buyers will sell about 1.5 million mt to EDF Trading at European LNG terminals for a period of approximately two and a half years beginning in June 2018, it said in a statement on Thursday.

The price of the chilled gas will be linked to European gas market prices and the volume sold can be “adjusted by JERA’s discretion”, the statement said.

This enables JERA to secure the flexibility to “correspond with the LNG demand fluctuation and also expand the opportunity for LNG trading business toward the future”.

JERA said it will continue to seek “such activity for the flexible structure of the LNG procurement, aiming to reduce the LNG price in Asia”.

The JV said in February this year that it expects to have 30-40 mtpa of contracted LNG volumes by 2030-31, compared with 40 mtpa now.

Jera said in its 15-year business plan it will be changing its LNG purchasing strategy as it is “building procurement and business development platforms capable of adapting to future fluctuations in fuel markets“.

The JV’s long-term LNG offtake volume will be at 35 mtpa as of July this year. However, Jera expects to reduce these volumes to 15 mtpa by 2030-31, according to its business plan.

Jera plans to replace these long-term LNG contracts with a “combination of highly flexible short-term/spot contracts and economically efficient/stable long-term contracts”.

The JV also aims to almost double the size of its LNG fleet to 30 vessels by 2030-31. Jera will operate a fleet of 16 LNG tankers as of July 2016, according to the business plan.

 

LNG World News Staff

 

Share this article

Follow LNG World News

Events>

<< Feb 2018 >>
MTWTFSS
29 30 31 1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 1 2 3 4

LNG Pricing, Trading & Risk Management: 3-Day Course

This three-day training program provides a unique opportunity to learn and apply the practical skills, knowledge and tools…

read more >

Asia Pacific Maritime and Offshore Exhibition 2018

7 years in the making, APM is the premier shipbuilding & marine, workboat and offshore exhibition in Asia…

read more >

CWC 2nd Papua New Guinea Petroleum & Energy Summit

The 2nd CWC Papua New Guinea Petroleum and Energy Summit is held under the patronage of the Prime Minister of Papua New Guinea…

read more >

CWC World LNG & Gas Series: 16th Americas Summit

Now in its 16th edition, the CWC World LNG & Gas Series: Americas Summit is the longest running LNG and gas event in the Americas region…

read more >