Press Release
Chubu Electric and BG Group sign 21 year LNG sales and purchase agreement
May 06, 2011
Chubu Electric Power Co.,Inc.
Chubu Electric Power Co., Inc. ("Chubu Electric") announced it had executed a fully termed LNG sales and purchase agreement with BG Group ("BG Group").
The agreement is for Chubu Electric to purchase LNG supplied from BG Group's global LNG portfolio including the Queensland Curtis LNG ("QCLNG") Project under development by BG Group's wholly owned Australian subsidiary QGC Pty Limited ("QGC"). This represents a first for Chubu Electric to receive LNG on a long term basis from a portfolio supplier which will not limit the source of supply to a particular project.
BG Group's QCLNG project will produce super lean LNG sourced from coal bed methane ("CBM"*1) gas. Chubu Electric is the first Japanese electric power company to agree to purchase LNG derived from CBM on long term basis.
Chubu Electric is to purchase up to 122 cargoes (ie. maximum of 8,540,000MT if a 70,000MT capacity vessel is used) over 21 years commencing 2014 on Ex-Ship basis.
Chubu Electric believes this LNG supply from the variety of BG Group's portfolio sources including BG Group's CBM project in Australia, QCLNG, will contribute to the procurement of stable and flexible LNG supply.
1 Outline of the agreement
|
Seller |
BG Group plc |
|
Buyer |
Chubu Electric Power Co., Inc. |
|
Term |
21 years commencing 2014 |
|
Quantity |
up to 122 cargoes over the term |
|
Delivery |
Ex-Ship basis |
2 Profile of BG Group
|
Company name |
BG Group plc |
|
Address |
100 Thames Valley Park Drive, Reading Berkshire, UK |
|
Representative |
Mr. Frank Chapman |
|
Establishment |
The company was established in 1999 for the exploration of gas fields, productions and LNG trading, acquiring overseas operations and assets of former British Gas which was privatized in 1986. |
|
Business |
BG Group plc (LSE: BG.L) is a world leader in natural gas, with a strategy focused on connecting competitively priced resources to specific, high-value markets. Active in more than 25 countries on five continents, BG Group has a broad portfolio of exploration and production, Liquefied Natural Gas (LNG), transmission and distribution and power generation business interests. It combines a deep understanding of gas markets with a proven track record in finding and commercialising reserves. |
3 QCLNG
|
Gas fields |
CBM tenements centered around Surat basin in Queensland, Australia |
|
Reserves |
Approx. 17.3 tcf (Approx. 460bcm) |
|
Production capacity |
Approx. 8.5MPTA (2 trains) |
|
First Delivery |
2014 |
*1 CBM
CBM is categorized as one of the unconventional gas, and consist of mainly methane which has been produced and stored mostly adsorbing to voids of the coal during the process of development of the coal.
It is said that there are rich CBM reserves in the world (8000-9000tcf), especially in Australia (350tcf) as well as the US, Canada, China and Europe. (1tcf = 20million tons of LNG).