Qatargas signs new 15yr LNG deal with Japan’s Chubu Elec

Qatargas will supply 15mn tonnes of liquefied natural gas (LNG) to Japan’s Chubu Electric Power Company over a 15-year period from 2013.

The new deal was sealed through a long-term sale and purchase agreement (SPA) concluded between Qatargas and Chubu Electric recently.

The new agreement is in addition to several existing deals between Chubu Electric and Qatargas. Chubu Electric was the first Japanese company to sign an SPA with Qatargas in 1992 and was also one of the eight Japanese power and utility companies that signed a multi-party contract with Qatargas in 1994.

In December 2011, Qatargas signed a tripartite agreement to supply LNG to Chubu Electric Power Company and Shizuoka Gas Company.

The new SPA with Chubu Electric is the third long-term contract concluded between Qatargas and Japanese buyers so far this year. Qatargas signed a long-term SPA with Tokyo Electric Power Company (Tepco) in June, followed by another agreement with Kansai Electric Power Company (Kepco) in September.

“Japan is the largest LNG importer in the world and this deal expands the continued partnership between Qatar and Japan and reinforces Qatar’s role as a secure and reliable supplier of LNG to Japan,” Qatargas said.

HE the Minister of Energy and Industry, Dr Mohamed bin Saleh al-Sada said: “Consistent with the vision of HH the Emir, Sheikh Hamad bin Khalifa al-Thani, this agreement is further testimony to Qatar’s leading role in helping ensure the energy security of countries around the world.

“Chubu Electric has a unique place in Qatar’s LNG success story. Liquefied natural gas deliveries from Qatar to Japan started with the first cargo to Chubu Electric in 1997.

“This new agreement underlines our ongoing commitment to supply LNG to Japan well into the future.” 

Qatargas CEO Khalid bin Khalifa al-Thani said, “This agreement opens a new chapter in our strong partnership with Chubu Electric, which started over two decades ago when we signed our first SPA in 1992.  Chubu Electric is our foundation customer and we greatly value our relationship with them.

“Qatargas remains committed to supporting Japan’s growing demand for LNG for the long term.”
Chubu Electric managing executive officer Yuji Kakimi said: “It is our pleasure to execute this new SPA in this memorable year, which marks the 40th anniversary of diplomatic relations between Qatar and Japan and also the 20th anniversary of execution of the first SPA between the world’s largest and most reliable LNG supplier, Qatargas, and Chubu Electric.

“We believe that the execution of this SPA has further strengthened the relationship between Qatargas and Chubu Electric.”

Source: Gulf Times


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