Jera, the joint venture created by Tokyo Electric Power and Chubu Electric, revealed plans to cut the amount of LNG it imports on long-term deals.
The company’s president Yuji Kakimi told at a summit that the company has no intention to automatically renew long-term LNG import deals ending around 2020. Jera imports more than 10 million tons of LNG per year under these deals that are set to expire, Reuters reports.
The company is currently buying 80 percent of its LNG supply through long-term contracts but intends to scale these down to the minimum volumes required by the JV. Any additional volumes will be acquired through mid-term and short-term deals or through purchases on the spot market.
Jera is expected to start importing 40 million tons of LNG next year as all its existing contracts are integrated, but Kakimi said that this is set to decline to around 28 million tons by 2030.
He added that Jera is looking to explore LNG trading opportunities through Chubu Electric’s Houston unit. Chubu electric has booked liquefaction capacity in Freeport LNG project in Texas that is set to start exporting LNG in 2018.
LNG World News Staff; Image: Tepco