Kyushu Electric Power Inks LNG SPA With Nippon Gas

Japanese utility Kyushu Electric Power has signed a gas sales and purchase agreement with Nippon Gas.

In a statement published Friday the company said it will supply a portion of LNG it procures from abroad to Nippon Gas using ocean-going carriers.

As per the agreement, supplies will commence in fiscal 2016 for a period of 15 years. Kyushu will supply 50,000 tons of LNG every year.

LNG cargoes will be delivered on a free on board (FOB) and DES basis, Kyushu Electric said.

In 2011, Kyushu Electric signed agreements to buy LNG from Chevron’s Gorgon and Wheatstone project in Australia. The utility would import up to 0.3 million tons of LNG per year from the Gorgon and 0.8 mtpa from the Wheatstone.