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Osaka Gas and Shell in agreement for a new long-term supply of LNG
July 7, 2010
Osaka Gas Co., Ltd.
Osaka Gas Co. Ltd and Shell Eastern Trading Pte. Ltd. (Shell) signed today a binding Sale and Purchase Agreement (SPA) for the long-term supply of liquefied natural gas (LNG).
According to the terms of the SPA, Osaka Gas will receive deliveries of LNG from Shell of up to 800,000 tons per annum for 25 years commencing in April 2012. The LNG in this new contract will be supplied from Shell痴 global LNG portfolio.
Osaka Gas believes that a 'portfolio supply' of LNG contributes to improving the value of LNG purchasing for the company through minimizing risks associated with supplies.
The initial 5 years of the 25-year term of the contract are a firm supply, and the remaining 20 years are linked to the final investment decision of Prelude LNG Project currently under development by the Shell group in Australia.
Key terms of SPA
||Shell Eastern Trading (Pte.) Ltd.
||Osaka Gas Co., Ltd.
|(3) Contract duration:
||25 years from April 2012
|(4) Contractual volume of LNG:
||up to 800,000 tons per annum
|(5) Terms of delivery:
||Ex-ship (Seller arranges vessels to transport LNG to buyer's receiving terminals)
Notes for editors
Shell Eastern Trading Pte Ltd
Shell Eastern Trading Pte Ltd is a wholly-owned subsidiary of Royal Dutch Shell plc. Incorporated in Singapore, it is a vital link in Shell痴 Global Trading network and handles the trading of exports manufactured by the Bukom refinery, LNG trading and other oil products.
Osaka Gas Co., Ltd.
Osaka Gas is one of the largest natural gas suppliers and a major energy services provider in Japan headquartered in Osaka with the customer base of 6.9 million mainly in the Kansai region. In addition to gas distribution and power generation business in Japan, the company is active in overseas energy markets both in upstream and downstream sectors having its assets in Australia, Oman, Indonesia, U.S., Spain and Norway. During the year ending March 2010, the company purchased a total of about 6.8 million tons of LNG.
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