Japan’s LNG importing giant JERA said it has signed a deal with Abu Dhabi Gas Liquefaction Company for the sale and purchase of liquefied natural gas.
JERA plans to purchase up to 8 cargoes per annum of LNG from ADNOC LNG for a period of three years beginning in 2019, the company said in a statement.
Deliveries are set to start in April of 2019 and continue through to March 2022.
The memorandum of agreement is in line with the Japan Fair Trade Commission ruling, issued in June 2017, which eliminates the strict destination clauses.
JERA believes that the deal for approximately 0.5 mtpa on a delivered-ex-ship (DES) basis will contribute to its ability not only to respond to fluctuations in LNG demand but also to optimize its LNG operations.
The company further noted that it will continue to focus on building and maintaining an optimal LNG procurement portfolio.