Chubu Electric Power Co., Inc. today signed an LNG sales and purchase agreement (SPA) with Shell Eastern Trading (Pte) Ltd.
As part of the agreement, Chubu Electric will purchase LNG to be supplied by Shell Eastern Trading (Pte) Ltd from Shell's global LNG portfolio.
Chubu Electric is set to purchase up to 12 cargoes per year for a period of 20 years on a Delivered Ex Ship (DES) basis starting in 2014.
A statement from Chubu Electric said that the company “believes that this LNG supply from a variety of Shell's portfolio sources will contribute to the procurement of stable LNG supply and allow Chubu Electric the flexibility to meet the change in Chubu Electric’s LNG demand.
Adapted from press release by Ted Monroe