Osaka Gas Signs Heads of Agreement with Shizuoka Gas
Osaka Gas entered into an agreement today with Shizuoka Gas Co., Ltd. on key terms and conditions for sale and purchase of liquefied natural gas (LNG).
Under the terms of the heads of agreement (HOA), part of LNG to be purchased by Osaka Gas will be supplied to Shizuoka Gas. Transportation of LNG to Shizuoka will be made by the vessels to be arranged by Osaka Gas.
Osaka Gas intends to broaden its activities in energy upstream and trading businesses for economical, flexible, and stable procurement of LNG. At the same time, the company will be seeking opportunities to develop greater use of natural gas that has superlative environmental qualities both at home and abroad.
Overview of HOA
Overview of Shizuoka Gas Co., Ltd.
||Osaka Gas as seller and Shizuoka Gas as buyer
|(2) Contract duration:
||20 years commencing in fiscal year 2014
|(3) Contractual volume of LNG:
||approximately 300,000 tons per annum
|(4) Delivery condition:
||Ex-ship (seller arranges transportation to deliver LNG to buyer’s receiving terminal)
Profile of Osaka Gas
||Mr. S. Iwasaki
||Shizuoka City, Shizuoka Prefecture
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.