Japan LNG supply deal signed

THE North West Shelf Venture and Chubu Electric of Japan have signed a heads of agreement for the ongoing supply of liquefied natural gas from Australia’s largest resources project. Chubu Electric is the third of the North West Shelf Venture’s original Japanese LNG customers to renew its long-term LNG supply requirements this year. In a seven-year deal to commence in April 2009, the North West Shelf Venture will supply more than 24 trillion British thermal units of LNG, amounting to just less than 0.5 million tonnes a year, to Chubu Electric on an ex-ship basis. Chubu Electric is Japan’s third largest power utility and the second largest consumer of LNG. Chubu’s service area, centred around Nagoya, is home to more than 15 million people and accounts for more than 20 per cent of Japan’s total industrial output.

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