• 15 mins PDVSA Booted From Caribbean Terminal Over Unpaid Bills
  • 2 hours Russia Warns Ukraine Against Recovering Oil Off The Coast Of Crimea
  • 4 hours Syrian Rebels Relinquish Control Of Major Gas Field
  • 5 hours Schlumberger Warns Of Moderating Investment In North America
  • 6 hours Oil Prices Set For Weekly Loss As Profit Taking Trumps Mideast Tensions
  • 7 hours Energy Regulators Look To Guard Grid From Cyberattacks
  • 9 hours Mexico Says OPEC Has Not Approached It For Deal Extension
  • 10 hours New Video Game Targets Oil Infrastructure
  • 12 hours Shell Restarts Bonny Light Exports
  • 13 hours Russia’s Rosneft To Take Majority In Kurdish Oil Pipeline
  • 19 hours Iraq Struggles To Replace Damaged Kirkuk Equipment As Output Falls
  • 1 day British Utility Companies Brace For Major Reforms
  • 1 day Montenegro A ‘Sweet Spot’ Of Untapped Oil, Gas In The Adriatic
  • 1 day Rosneft CEO: Rising U.S. Shale A Downside Risk To Oil Prices
  • 1 day Brazil Could Invite More Bids For Unsold Pre-Salt Oil Blocks
  • 1 day OPEC/Non-OPEC Seek Consensus On Deal Before Nov Summit
  • 1 day London Stock Exchange Boss Defends Push To Win Aramco IPO
  • 1 day Rosneft Signs $400M Deal With Kurdistan
  • 2 days Kinder Morgan Warns About Trans Mountain Delays
  • 2 days India, China, U.S., Complain Of Venezuelan Crude Oil Quality Issues
  • 2 days Kurdish Kirkuk-Ceyhan Crude Oil Flows Plunge To 225,000 Bpd
  • 2 days Russia, Saudis Team Up To Boost Fracking Tech
  • 2 days Conflicting News Spurs Doubt On Aramco IPO
  • 2 days Exxon Starts Production At New Refinery In Texas
  • 3 days Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 3 days Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 3 days Oil Gains Spur Growth In Canada’s Oil Cities
  • 3 days China To Take 5% Of Rosneft’s Output In New Deal
  • 3 days UAE Oil Giant Seeks Partnership For Possible IPO
  • 3 days Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 3 days VW Fails To Secure Critical Commodity For EVs
  • 3 days Enbridge Pipeline Expansion Finally Approved
  • 3 days Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 4 days OPEC Oil Deal Compliance Falls To 86%
  • 4 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 4 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 4 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 4 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 4 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 5 days Aramco Says No Plans To Shelve IPO
Trump Just Made Iran A Wildcard

Trump Just Made Iran A Wildcard

The impact of Trump’s decision…

2 Red Flags For The World’s Top Shale Play

2 Red Flags For The World’s Top Shale Play

Changing legislation and taxation for…

James Burgess

James Burgess

James Burgess studied Business Management at the University of Nottingham. He has worked in property development, chartered surveying, marketing, law, and accounts. He has also…

More Info

Japanese Utilities Step up LNG Purchases

Japanese Utilities Step up LNG Purchases

To make up for the continued shortfall in electricity generation from the dozens of idle nuclear power plants, Japanese utilities are increasing their purchases of LNG from abroad. Tohoku Electric Power Co. announced on Feb. 4 that it signed a 15-year contract to buy LNG from Qatar. The deal, which begins in 2016, will allow for the import of 60,000 to 90,000 tonnes of LNG per year from 2016 to 2018, and 180,000 tonnes thereafter for the duration of the contract.  

This followed the agreement made by Toho Gas, which last week announced that it signed its first contract based on a link to Henry Hub prices rather than traditional oil-linked contracts. Toho signed a 20-year deal with Sempra LNG to take gas from the proposed US Cameron LNG project in Louisiana. The export terminal is awaiting the go-ahead from the U.S. Department of Energy. The project is notable because it is backed by a 33.2% combined stake from a consortium of Japanese companies, according to Platts. Mitsui, Mitsubishi and Nippon Yusen Kabushiki Kaisha went in together on the export project, the first time Japanese companies have done so in the U.S, and a sign that Japan sees the U.S. as an increasingly important source of LNG.

Related article: Is There Still Opportunity in the Natural Gas Space?

Last year Kansai Electric signed a 20-year deal to take LNG from the proposed Cove Point terminal on the Chesapeake Bay in Maryland. That project is facing blowback from environmental groups and has yet to receive approval. Still, Kansai’s deal was also linked to Henry Hub prices, an indication that as more U.S. LNG reaches global markets, the higher volume will slowly chip away at the practice of linking prices to the price of oil. And with Henry Hub prices much lower than the global price of oil on an energy-equivalent basis, Japanese companies feel confident that they will get a better deal.

By. James Burgess of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News