Chubu Electric diversifying LNG sources
In a push to diversify its LNG supply sources, Chubu Electric is looking to turn to North America, Asia Pacific, Africa and Russia.
In a recent interview, Hiroki Sato, general manager of the fuels department and head of trading, said the company wants to reduce the long-term contract portion. This would leave space for short-term and spot purchases, diversifying Chubu Electric’s portfolio.
“We want to be a portfolio player. This would allow us to pursue optimization when we want to step up and exercise trading functions,” said Sato to Platts.
With 60% of Chubu Electric”s LNG imports coming from Qatar, the company is looking for price flexibility and exploring the markets of North America, Asia Pacific and Russia. Freeport LNG project in Texas, awaiting export approval, is one of the sources the company is waiting on since it has a tolling agreement that would allow Chubu Electric to offtake 2.2 million mt/year.
LNG World News Staff, July 7, 2014; Image: Freeport LNG