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Shell signs 25-year LNG supply deal with Osaka Gas

Singapore: Shell Eastern Trading Pte Ltd, a unit of Royal Dutch Shell PLC, and Osaka Gas Co Wednesday signed a binding agreement for long-term supply of liquefied natural gas.
The 25-year supply of up to 800,000 metric tons a year to the Japanese utility, starting from April 2012, will be sourced from Shell's global LNG portfolio, Shell said in a statement.
"We are delighted to sign this agreement with Osaka Gas, one of our key customers and an important partner for Shell in the LNG industry," David Wells, Vice President of Shell International LNG Supply, said at a Singapore signing ceremony.
"This signing represents another milestone in our growth of LNG supplies into Japan. Japan is a key market for Shell, and we are committed to help secure the energy the country needs, now and in the future."
Osaka Gas Senior Executive Officer Kazuo Kakehashi said he believed the "broad relationship between Shell and Osaka Gas in the LNG business will remain crucially important in the days to come and hope that this long term contract will further strengthen our ties."
Shell Eastern Trading, incorporated in Singapore, is part of Shell's global trading network.
It handles the trading of exports manufactured by the 500,000 barrel-a-day Bukom refinery in Singapore, as well as trading LNG and other oil products.
Osaka Gas, Japan's second-largest gas utility by sales volume, has a customer base of 6.9 million people, mainly in Japan's Kansai region. It purchased about 6.8 million tons of LNG in the year ended March 31.
In December, Osaka Gas finalised an LNG purchase agreement with Exxon Mobil from the planned $15 billion PNG LNG project in Papua New Guinea for about 1.5 million tons of gas a year for 20 years. [08/07/10]


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