Press Release

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


 BG Group plc


 Chubu Electric Power Co., Inc.


 21 years commencing 2014


 up to 122 cargoes over the term


 Ex-Ship basis

2 Profile of BG Group

 Company name

 BG Group plc


 100 Thames Valley Park Drive, Reading Berkshire, UK


 Mr. Frank Chapman


 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.


 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.


 Gas fields

 CBM tenements centered around Surat basin in Queensland, Australia


 Approx. 17.3 tcf (Approx. 460bcm)

 Production capacity

 Approx. 8.5MPTA (2 trains)

 First Delivery


The map of Queensland Curtis LNG

*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).

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