Japanese power production company, Kansai Electric, has partnered with ENGIE on an LNG agreement. The agreement will provide shipping optimisation and other commercial and marketing opportunities in both the European and other LNG markets.
The transaction, which will commence in 2019, is for an initial period of four years. This, however, could extend up to 20 years. ENGIE will manage purchase, sale and shipping agreements within its own diversified LNG portfolio.
Under the new agreement, ENGIE will purchase 0.4 million tpy of LNG from Kansai’s North American LNG. Depending on markets conditions, ENGIE could then sell an equivalent amount of LNG to Kansai Electric in Japan.
Philip Olivier, Chief Executive Officer of ENGIE Global LNG, declared: “We are delighted to initiate this partnership with Kansai Electric, a major energy player in Japan. This agreement underlines the value that ENGIE, as a major LNG player, can bring to utilities such as Kansai Electric through its diversified LNG portfolio, its capacity to trade on global LNG markets and its shipping experience.”
Edited from press release by Callum O'Reilly
Read the article online at: https://www.lngindustry.com/regasification/21072015/engie-and-kansai-electric-sign-lng-agreement-1045/