Total inks LNG supply deal with Chugoku Electric

Total of France signed a deal with Japenese utility, Chugoku Electric for the supply of liquefied natural gas for 17 years starting from 2019. 

Under the agreement, Total will supply Chugoku Electric with up to 0.4 million tons of LNG per year sourced from the company’s global portfolio, the statement reads.

Total’s LNG production levels were at 10.2 million tons in 2015 and the company intends to double its liquefaction capacity to around 20 mt/y by 2020. It also intends to increase its LNG trading portfolio to 15 mt/y by 2020.

Chugoku Electric imported 2.5 million tons of liquefied natural gas in its fiscal year 2015. The company receives liquefied natural gas at two import facilities, the Mizushima and the Yanai LNG import terminals.

The utility, with 12 gigawatts power generation capacity supplies electricity mainly to customers in the Chugoku Region located at the western end of Japan’s main island of Honshu.