Osaka Gas Co. Ltd and Shell Eastern Trading Pte. Ltd. (Shell) signed today a binding Sale and Purchase Agreement (SPA) for the long-term supply of liquefied natural gas (LNG).
According to the terms of the SPA, Osaka Gas will receive deliveries of LNG from Shell of up to 800,000 tons per annum for 25 years commencing in April 2012.
The LNG in this new contract will be supplied from Shell’s global LNG portfolio.
Osaka Gas believes that a ‘portfolio supply’ of LNG contributes to improving the value of LNG purchasing for the company through minimizing risks associated with supplies.
The initial 5 years of the 25-year term of the contract are a firm supply, and the remaining 20 years are linked to the final investment decision of Prelude LNG Project currently under development by the Shell group in Australia.
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Source: Osaka Gas, July 7, 2010;