Total has announced that it has signed a binding Heads of Agreement with Chugoku Electric for the direct supply of LNG for 17 years.
Under the agreement, which starts in 2019, Total will supply up to 0.4 million tpy of LNG to Chugoku Electric. The LNG will be sourced from Total’s global portfolio.
Laurent Vivier, President Gas at Total, said: “This supply agreement with one of Japan’s major regional electric utilities is an important milestone for Total in the country where the Group has been a reliable partner in supplying LNG for almost 40 years […] Strengthening our presence in Japan, the world’s largest LNG importer, through long-term cooperation with leading LNG buyers such as Chugoku Electric is a key component of Total’s strategy. This is already the third long-term contract signed by Total this year, following agreements with Pertamina and ENN.”
Last year, Total’s LNG production was 10.2 million t. The company is aiming to double its liquefaction capacity to around 20 million tpy, while increasing its LNG trading portfolio to 15 million tpy by 2020.
Edited from press release by Callum O'Reilly
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