Osaka Gas considering long-term LNG supply deals
Japan’s utility Osaka Gas could be in the hunt for new long-term LNG supply deals as it increases its trading activities.
Speaking to Reuters, Keiji Takemori, a senior general manager of LNG trading at Osaka Gas, said the company plans to up its trading volumes and is interested in closing new deals.
Recently, Japanese buyers have backed off the long-term deals seeking flexible contracts and focusing more on short-term and spot supplies due to a decrease in demand.
The long-term deals Osaka Gas is eyeing shall not have destination restrictions, enabling the company to trade with the volumes. Takemori added that the decision is yet to be made on extending its long-term LNG supply deals with Qatar and Indonesia, both expiring by 2021.
The company is also looking to increase its free-on-board share of contracts to 70 percent, up from the current 50 percent, by 2021 also with an eye to streamlining its trade options.
Osaka Gas is looking to up its liquefied natural gas purchases to over 10 million tons in 2020, 0.5 mt over the volumes purchased during the year ending March 2017.