Hepco signs two LNG supply deals

Hokkaido Electric Power of Japan has firmed up two LNG supply deals with Kansai Electric Power and Malaysia LNG. 

According to the company’s filing, under its deal with Kansai Electric Power, Hepco will purchase up to three cargoes per year, or 200,000 tons, for a period of 10 years, starting in April 2018.

Under its deal with Malaysia LNG, Hepco will purchase up to 2 cargoes per year, or approximately 130,000 tons of liquefied natural gas. The deliveries under the 10-year deal will also start in April 2018.

Hepco is constructing an additional LNG storage tank with the capacity of 230,000 cbm at the site of Ishikari LNG terminal, operated by Hokkaido Gas where the cargoes will be delivered.

LNG from the terminal will be fed further to Hepco’s first LNG-fueled thermal power plant, that the company intends to start up in February 2019.

LNG World News Staff; Image: Hepco