Japanese-based Shizuoka Gas has signed an agreement to sell the re-load liquefied natural gas (LNG) cargo from its Shimizu LNG terminal to Shell Eastern Trading in Singapore.
In April this year, the company converted the terminal into a bi-directional terminal with the addition of reloading facilities.
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The company is seeking further utilisations of the terminal to achieve the LNG cost cuts in the newly deregulated gas market.
The first cargo is planned to be shipped to Shell Eastern during the first quarter of next year on a free-on-board basis.
Shizuoka Gas said in a statement: "This is our first binding contract to supply LNG through our LNG terminal.
"Shizuoka Gas is continuously committed to pursuing the possibilities for the reduction of LNG cost by increasing transaction volumes at Shimizu LNG Terminal and taking advantage of liquidity in expanding global LNG market."
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By GlobalDataIn December last year, Shizuoka Gas signed an agreement with Jera for the sale and purchase of 70,000 tonnes of LNG.
In the five-year contract beginning in 2022, Jera is the seller, and the LNG price is linked to the US natural gas market index instead of crude oil price.
The gas will be supplied to Shizuoka Gas’s Shimizu LNG receiving terminal, Sodeshi Terminal.
