Shell, Chubu Electric sign LNG supply deal

Shell Eastern Trading (Pte.) Ltd., a Singapore-based subsidiary of Royal Dutch Shell PLC, has signed a sales and purchase agreement with Chubu Electric Power Co. Inc. to supply as many as 12 cargoes/year of LNG over the next 20 years beginning in October.

The agreement is the first long-term LNG deal directly between Shell and Chubu, which supplies power to central Japan’s Chubu region, a major manufacturing hub.

“Shell has a long history of supplying natural gas to Japan, and this agreement demonstrates our continued commitment to the country,” said Maarten Wetselaar, executive-vice president, Shell Integrated Gas.

Shell previously made LNG supply deals with PetroChina International and CPC Corp., each for 2 million tonnes/year over 20 years (OGJ Online, Nov. 26, 2008; May 16, 2011).