Japan's JERA to buy up to 1.2 mln T per yr of LNG from Canada project (updated)
09/04/2019 08:29
* Says will buy up to 1.2 mln T per year from LNG Canada
* Deal is for about 15 years from April 2024
* Marks its first purchases of LNG from Canada
(Adds detail)
TOKYO, April 9 (Reuters) - Japan's JERA, the world's top
buyer of liquefied natural gas, on Tuesday said it had signed an
agreement with a Mitsubishi Corp 8058.T unit to buy up to 16
cargoes, or 1.2 million tonnes per annum (mtpa), of LNG from the
LNG Canada project.
The heads of agreement (HOA) signed between JERA and Diamond
Gas International is for about 15 years from the business year
starting from April 2024, said JERA, a joint venture between
Tokyo Electric Power 9501.T and Chubu Electric Power 9502.T .
The deal will be the first time JERA procures LNG from
Canada, it said in a statement.
JERA also said that the agreement was in line with the Japan
Fair Trade Commission ruling in June 2017, which declared
so-called destination restriction clauses to be anti-competitive
and called for destination flexibility in LNG contracts.
urn:newsml:reuters.com:*:nL4N1UZ3BB
The C$40 billion ($30 billion) LNG Canada project led by
Royal Dutch Shell RDSa.L was given the go-ahead by the
Anglo-Dutch giant and its partners in October last year, making
it the fuel's first major new project to win approval in recent
years. urn:newsml:reuters.com:*:nL4N1WI1FF IDnL8N1Y436B
Buyers from the project so far include trading house
Vitol VITOLV.UL as well as Asian utilities such as Tokyo Gas
9531.T , Toho Gas 9533.T and Korea Gas Corp
(Kogas) 036460.KS . urn:newsml:reuters.com:*:nL8N1Y436B
($1 = 1.3313 Canadian dollars)
(Reporting by Yuka Obayashi in TOKYO; Additional reporting by
Jessica Jaganathan in SINGAPORE; Editing by Richard Pullin and
Joseph Radford)
((Yuka.Obayashi@thomsonreuters.com; +813-6441-1798; Reuters
Messaging: yuka.obayashi.thomsonreuters.com@reuters.net))