Shell announces LNG sales deal with Japan’s Chubu Electric
May 29, 2014
Shell will begin supplying liquefied natural gas (LNG) to one of Japan’s leading electric companies from October 2014, in a deal that reinforces Shell’s position as a key LNG supplier in the country.
Shell Eastern Trading (Pte) Ltd, a Singapore-based subsidiary of Royal Dutch Shell, signed a sales and purchase agreement today with Chubu Electric Power Co., Inc. (Chubu Electric) to supply up to 12 cargoes of LNG a year for the next 20 years. Chubu Electric supplies power to central Japan’s Chubu region, a major manufacturing hub.
“Shell has a long history of supplying natural gas to Japan, and this agreement demonstrates our continued commitment to the country, “ said Maarten Wetselaar, Executive Vice President, Shell Integrated Gas. “It further underlines our strength in the LNG market as we mark our 50th year in LNG. As one of the world’s largest LNG producers and marketers, with a strong, diverse portfolio, we are well positioned to respond flexibly to short term changes in demand and help ensure security of supply for the companies and countries we work with.”
This agreement is the first long-term LNG deal directly between Shell and Chubu Electric, a key customer in Japan.
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