Hot Features
Premium
Trade like a pro: Leverage real-time discussions and market-moving ideas to outperform.
What are the details?
BP and The Kansai Electric Co., Inc. (Kansai Electric) today entered into a sales and purchase agreement for liquefied natural gas (LNG), and a cooperation agreement for the purpose of exploring opportunities for business collaboration.
Under the agreements, BP will provide Kansai Electric with up to 13 million tonnes of LNG over 23 years, from BP’s diverse portfolio of LNG sources. In addition, the agreements provide for Kansai Electric and BP to explore areas of cooperation across a wide range of LNG business activities such as LNG trading, and optimization of LNG ship operations.
Paul Reed, Chief Executive of BP Integrated Supply and Trading, said: “BP highly appreciates the long-term relationship with Kansai Electric that has resulted in the conclusion of these new LNG sales and co-operation agreements. Building on a separate LNG sale and purchase agreement signed in 2013, this new LNG deal entails additional supply from BP’s portfolio. We are very pleased that Kansai Electric and BP have agreed this expanded LNG business and we look forward to working together to explore areas of further cooperation.”
The Kansai Electric Power Co., Inc. is Japan’s second largest electric utility, with 13 million customers and 22,000 employees. It was established in 1951.
BP is active in many of the major LNG producing regions as well as in the main LNG markets. It is involved in LNG projects in Australia, UAE, Indonesia, Egypt, Trinidad and Angola.
BP has a liquefaction tolling agreement for over 4.4 mtpa LNG capacity in train 2 of the Freeport LNG Project in Texas, USA (Freeport). The project is currently under construction with production from train 2 of Freeport expected to begin in 2019.
