Shizuoka Gas inks LNG sales deal with Shell

Shizuoka Gas on Friday informed it has signed an agreement with Shell to supply one cargo of liquefied natural gas from its recently completed reloading facility at the Sodeshi terminal.

The company said in its statement that the reloading facility at its Sodeshi LNG terminal has been completed in April.

The cargo from the reloading facility, under the SPA, is scheduled to be shipped during the first quarter of 2017 on a free on board basis (FOB).

Shizuoka Gas added that it is looking to increase the utilization of its Sodeshi LNG terminal in order to reduce the LNG cost in the newly deregulated gas market.

Additionally, the company is looking to increase the handling capacity of the terminal in order to take advantage of the liquidity in the expanding global market and further reduce the LNG procurement costs.

Earlier in March, company’s deputy general manager, feedstock department, Hirotaka Kaneda was reported as saying that Shizuoka Gas imports about 1 million tons of LNG per year and plans to resell up to two cargoes per year to neighboring countries like China and South Korea.

LNG World News Staff