The FTSE 100-quoted energy giant will supply up to 12 cargoes of LNG a year for the next 20 years through its Singapore-based subsidiary Shell Eastern Trading. Chubu Electric provides power to central Japan’s Chubu region, a major manufacturing hub in the country.
The agreement is the first long-term LNG deal directly between Shell and Chubu Electric.
“Shell has a long history of supplying natural gas to Japan, and this agreement demonstrates our continued commitment to the country, “ said Maarten Wetselaar, executive vice president of Shell’s integrated gas division. “It further underlines our strength in the LNG market as we mark our 50th year in LNG. As one of the world’s largest LNG producers and marketers, with a strong, diverse portfolio, we are well positioned to respond flexibly to short term changes in demand and help ensure security of supply for the companies and countries we work with.”
Japan has become the world’s largest LNG importer since the Fukushima nuclear disaster. Soaring energy prices in Asia and limited supply have also caused utility firms to ramp up their imports.
Japan, South Korea, Taiwan and China collectively bought 70 per cent of the world’s LNG last year.