Kansai Electric of Japan is targeting more flexible LNG supply deals that would ensure the company can respond to demand changes and adjust its portfolio accordingly.
The company has already struck an LNG supply deal with BP that allows it to resell cargoes to third parties. It has also signed a deal with Engie to sell 400,000 mtpa of LNG from its North American LNG, and buy the equivalent amount from Engie depending on the market conditions, in order to save on shipping costs.
Tatsushi Fujiwara, general manager for Kepco’s office of fossil fuel told Platts that when it comes to maturing contracts, the company would like to consider deals similar to the ones signed with BP and Engie.
He also added that the company targets to enhance its flexibility by cooperating with various suppliers, traders and buyers.
Kepco intends to have 30% mid-term and short-term deals in its LNG portfolio with long-term deals taking up the 70% ideally, but due to the changing market conditions, the company is not setting specific targets.
LNG World News Staff; Image: BP