Conclusion of HOA for Sale of LNG to Shizuoka Gas
JERA Co., Inc. ("JERA") is pleased to announce that it has entered into a Heads of Agreement ("HOA") with Shizuoka Gas Co., Ltd. ("Shizuoka Gas") for the sale of LNG.
This HOA is for the sale of a specified volume of LNG to Shizuoka Gas's LNG terminal for a period of five years beginning in 2022. The LNG sold will be from JERA’s portfolio, the supply sources of which are not specified beforehand.
This HOA includes a provision for linking the sales price index to U.S. natural gas. JERA believes this will contribute to Shizuoka Gas’s diversification strategy for LNG price indices.
JERA will continue working to move forward detailed discussions with Shizuoka Gas to conclude an unconditional LNG sales and purchase agreement.
JERA, one of the world’s largest-class LNG buyers, aims to reduce the LNG price in Asia by establishing the best procurement portfolio. It intends to establish a good relationship with other LNG buyers inside and outside Japan by utilizing its portfolio with them.
Overview of HOA
|Seller||JERA Co., Inc.|
|Buyer||Shizuoka Gas Co., Ltd.|
|Term||April 2022 to March 2027 (5 years)|
|Quantity||1 cargo (approx. 70,000 metric tons) per year|
|Supply source||JERA portfolio|