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Hokkaido Electric signs LNG purchase deals

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LNG Industry,


According to Reuters, the Japanese energy company, Hokkaido Electric Power Co. has reportedly signed agreements to buy up to 330 000 tpy of LNG from Kansai Electric Power Co. and a Malaysian subsidiary of Petronas.

The agreement entails that, as of April 2018, Hokkaido will buy up to three cargoes from Kansai and up to two from the Petronas subsidiary per year. According to Reuters, Kansai will reportedly supply the LNG from its portfolio contracts, whilst Malaysia LNG sdn Bhd will supply Hokkaido with locally produced LNG. Both of these contracts will be delivered on an ex-ship (DES) basis. These agreements will last for 10 years from April 2018.

This purchase was made in preparation of the launch of Hokkaido’s LNG-fuelled Ishikariwan Shinko plant in 2019, which has a 569 MW unit scheduled for completion in February 2019. The purchased LNG cargoes will, therefore, cover the feed for both units 1 and 2. However, the second unit will reportedly not be operable until December 2021.

Edited from various sources by David Rowlands

Read the article online at: https://www.lngindustry.com/regasification/25092015/hokkaido-signs-10-year-contract-for-lng-from-kansai-and-petronas-1359/


 

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